A COMPANY QUESTION.

Hawera & Normanby Star, Volume LI, Issue 9137, 9 July 1906, Page 7

A COMPANY QUESTION.

WELLINGTON, July 9.

The caso Gowiishaw and others v. the Press Company, Christchurch, was resumed in the Appeal Court.

Mr Bell, for plaintiffs, quoted authorities in support of his contention that the profits made by defendants from 1892 to 1898 should have been expended on paying dividends to original shareholders instead of being put into the business and converted intf» capital. Counsel quoted from the balance-sheets to show that between 1891 and 1904 the assets of the company had considerably increased, and the increase had. been builfc up out of annual profits after paying a dividend of 8 per cent, to preference shareholders. Plaintiffs wanted an account of the profits taken and a declaration of the Court that the profits which should have been paid to ordinary shareholders which had been used to build up the business of the company belonged, to ordinary shareholders. Mr Stringer followed, addressing the Court on the question of tKe duties of directors in dealing with the profits of a company.