DISTRICT COURT, REEFTON.

Inangahua Times, Volume III, Issue 90, 16 March 1877, Page 2

DISTRICT COURT, REEFTON.

Monday, March 10, 1877. (Before His Honor Judge Westoa.) Re United Monte Chbisto Gold Mm* ing Company (in mqcidation). Mr Pitt moved on behalf of the Liquidator under the 108 th section of the Mining Companies Aot for an order to close the liquidation. The Liquidator had prepared a statement of the company's assets and liabilities, together with the plan of distribution. The state* ment showed the expenses incurred in winding-up the estate. His Honor-*And what is the Court asked to do in tbe matter 9 Mr Pitt— The Court is asked to ap« prove the plan of liquidation, and order that the liquidation be formally dissolved, and it will be then for the Liquidator to Gtesettt the order. His Honor— l ste that tbe statement is included in one account. I think the aot contemplates that there should be separate accounts filed for each item. Mr Pitt said the Act only spoke of one schedule.

His Honor said that the matter went rather to the form than the substance, bat as they were fixing upon a practice it would therefore be- as well to in future file the -.accounts separately, Mr Btt said that tie statement showed that after liquidating all the claims against the estate, thete would be a small balance in hand for distribution amongst the cod* tributaries. His Honor— This is an application for an order of dissolution upon a statement nndplan of distribution submitted, and nay be regarded as a preliminary step o war da dosing up the afftirs of this un* ortunate company. That this company lias been wound up successfully, espediiously, and economically is certain, bat at best it is a wretched method of doing the work. In this case the National Bank is the only creditor, their debt being about £100; and if the suareh riders bad met beforehand and arranged to settle the matter amongst themselves, ho* much better it would bare been, the company would have been saved from disgrace— I for it is a disgrace— and all the expenses ' which the intervention of the Court has necessitated, would have been avoid-d. It will be seen that to pay off that one debt of £1000 by compulsory liqu.da>ion, it has cost the shareholders exactly £228 15s B J. Now it will be seen that the expenses of winding-up have added nearly 25 per cent, on the debt, and it cannot be said that the costs here charged are at all excessive. The Court has very carefully examined all the accounts, and cannot say that there is one item of expenditure that was unnecessary, or that is at all exorbitant. On the contrary, the Court recognises that the liquidation has been conducted most economically. I think tbst when the particulars are laid before the public, people's eyes will be fairly opened to the folly of allowing companies to pass into liquidation when all this expense oan be avoided without recourse to law. The expense of windingup companies is large at all times, but it must be recollected that if the debts in this instanco had been only £100 or £200 instead of £1000, the expense or | liquidation would possibly have been almost the same. However, the liquidation of this company having been conpleted, nothing now remains for me but to grant the order as prayed for, and iv doing so I congratulate Mr M'Lean on the expedition and economy he has exer* cised in the matter. One or two other unimportant applications bavins been disposed of, the Court adjourned sine cHe.