UNIQUE CASE

Hokitika Guardian, 4 December 1934, Page 6

UNIQUE CASE

IN NEW ZEALAND COMPANY LAW CHIITRTCHUR'CH, December 4. An action described a s unique in New. Zealand oompany lay came before Mr Judges, Johnston in the preme 'sC(dart to-cty*y when tiro official assignee, as liquidator of a company brought. a motion seeking an order requiring two directors of; the company to pay him sum s totalling £6Ol, of which £3BO is alleged to have been taken with intent to defraud the creditors, and the remainder incurred as debts when the company was insolvent. (

The motion asked that Frank Henry Albert' Dodge and Corrie Bed vers Dodge, builders, be ordered to pay sums totalling' £6Ol to the official assignee as liquidator, of Dodge Brothers, Ltd., builders. Counsel for assignee said the company started with a little liquid capital, and soon found itself in trouble. The idii’ectons! drew heavily ion the capital as they advanced. In 1930 the -company’s turnover was £28,000, and in 1932,£5,000. In 1931, with £IO,OOO turnover the net loss was £1653, and in 1932 £293. In July 1931, the company was definitely insolvent, but continued to trade and incur debts. It had no working capital, and increased its commitments with creditors pressing. After a creditors’ meeting had been . called,’ one member of the firm paid himself £ißo. Later another brother paid himself £2OO. . (Proceeding.)