DAIRY SHARES

Hawera & Normanby Star, Volume XLII, Issue XLII, 2 May 1923, Page 5

DAIRY SHARES

» IMPORTANT DECISION. !

NORMANBY CASE CITED.

(BY TELEGRAPH —PRESS ASSOCIATION ) . CHRISTCHURCH, May 1. An important judgment of interest to dairy farmers has been delivered by Mr Wyvern Wilson, S.M., in a case in which R. Hemingway claimed £14 from the Kaikoura Co-operative Dairy Company, plaintiff having declined to accept the company's shares in lieu of this money. Some tinie ago the company put in a butter plant, and it -was agreed the money should be raised by the issue of further shares, the suppliers to take one share for each two cows milked. Plaintiff, who is a shareholder in the defendant company and a supplier to the factory, declined to take shares in lieu of cash for butter-fat sold. In the course of his judgment, the magistrate said the legal position was well expressed by Mr Justice Salmond in Donald v. the Normanby Co-opera-tivo Dairy Company, in which he stated: "A company cannot issue or allot shares except to a person who has agreed with the company to accept them. Shares have their sole origin in a contract between the company and tho person to whom they are originally issued." In the present case plaintiff had n€ver contracted \o take up more shares, and he should have the money held by the company paid to him as the balance of the price of rfehe jbutter-fat sold. Judgment was accordingly entered for plaintiff for £14 and costs. ,