DISTRICT COURT REEFTON.

Inangahua Times, Volume V, Issue 20, 14 January 1878, Page 2

DISTRICT COURT REEFTON.

(Before- His Honor Judtfo Wcston.) Monday, 7tb Janfart. L1.07P, MQiUIDATO-11, iTAtCYON (JtTAnTJT WIWINO COMrANY, l'l AINTITT ; JOBIW BKATOK, a fiir-vniciro-M)! n, i>kfrndaxt. Mr Fisher for plaintiff Mr Hfl^ildcm for defendnn-tr His- Honor gnre .fudßii onrt m fol'ows r— This nction was raiood t • roevjver £4% 6V ©1 for enlls »nd inlcrc i 4 thereon. Tlie short fiiets of the enso, nre dm lohows : Tho oompnny wns inflorpfSnHod under "Tho Mining Companies Aol;, 1872?." Thn defen* dant in- lite month of nWiut, l ; B7ffj«'f|r witli the mnna'«er r Mr (Vliuiro f n transfer tO tiro Oompnny tor 5;1i20"> shnro.s ;: en I paid tho trntiHfor fees, vjliioli, n» I undorstoc d wero tlie innnn'Ker's 1 perquisites. A petition for winding l wp thu oompnny wits then perdiiiß* Folr tho transfer i.c receipt wi\* either ftslccdi for or given ; tl.e miinnuer, hf>wev(<r, ontc'rei! (Uftlriiiisiujlion io a jiurnul, wliK'h diselDipd the com. pnny'a nuinlior imdi dntii 1 of (.mnsfnr ; tho nitiwher ttnc] di.stinctiv '■ auiu'.HjrH of the ivliaros y Uic invinoii of . t hir tnunfiTcr nml trnnsferoe. Aftor .Jab'' wry \»»f, nnd »übsofjufeiit t,o the M\u\)* ci w» of tho cull now aiiod fotv, tho shiireft wo c formoily trans-fi-rerl in tho rt»pfi»ter \ tho duto o? Iho entry hftnnn rehition to the dnto of tho iinslriimdiih. lit Fehnwtry tho ow»pnr>y w »b pliitiod in liqividup on y\n Apnl the plnintifl' *ns appointoj lirfniiiator. On thu 80th A»ftnnt the Court ordo-red ilm» »uhfttitHtiou of tho defem ant'» fiuino lor that of the e«)nipn»y upon thw rrgis or, in re»» po(rt of tho shnres mentioned. For tho prineiploM by which Jto Court must he Rtiidedi j'ii iiilerprfttitg the otnluo latr 1 ennnot do bettor than refer leanvd ooun--Bcl to Dn-nrrifl nnd KfX. r. Stoko Deworrf. 7 B nnd C, 56U*. It J# snid that, •In iuterprclTn^ 'ho lnw thp Courts nro to explnin tho intentions/ of the Louis*! attire, yet the construction [to ho put upon nu Act must bo such a* is WArrtnled by, or i», nt len.it, not repui^nnnit to, the worvh of tho- statute. Wh|ro the ebjoefc of the Logislnturo r» plnip n>nd unequivoen 1 !, Coi*rtt»ou^ht withouf vwloneo to \\\<? wonh used, to adopt such 'n oon,»' ruction nswill best eiTfotunto tho irnlenlion of thn lnw gives. But they must not, vn order to divo efTcot t© 1 vrlint jtlie-y n>ay nupposo tob' the intentions o-fj tho LcKislnture, put upon the provi»ioii(a of strettiito a con* atrwclion not wnrriinted by tho words, thoogh the oonaoquHico ahonld he to do> font tho ol joct» of tho Act." When expounding a stnlwtojPrtilco B n'ao tolls us in Perry v, Slnnnet*, 2 M, nnd W, 47 H-— "Tho rale by wltioli Courts nro to bo guided is to look at Iho precise words, to construe tht-m into' their ordinary senao, wnl'cus H would loa3 to any absurdity or manifest injustice, itud rf ft should 1 , so to rury nnd modify, thus to nroid tltnt which oortnrnly could' not hnro l)»wn the intention of tho L>«i»lntnro. Wo most pot a reasonable construction upon Mmrr words." Now, with authorities bofor 1 us, wo pro* onedtoflsccrtnin, by roferrrng tosoctron 52 the modo prosorihed for thorrovorfnij b 7 tho manager of overdue calls; nnd vn that wny to discover tho position ofn liquids tor who, by section 90, " »haU so soon ait may ho after iha making of tho ardor " nppiontinpf tho licjuidntor, "collect and if necessary .two for mil rccovar by any of tho modes by which tho mntacftfr might ham done m," tho cnlls in ittrcnr. By section 52 n cull is made a debt to the oompnny, tho mnnnger is authorised 'to suo for rfc by notion, tho prooaduro, to nn oxtont, is there proscribed. Upon tho judgment obtninod, oxooution ntjainst tho goods nnd person of tho dobtor might tsMie ; it would rtljo bo competent, I think for tho mnnngorl upon his judgment, to obtnin nn adjudication in hnnlrruptoy. It j is Hcnrcoly nooessnry to guy Mint, bt»t for tho stntutory power oonr.Tivd upon tho mnnngor tho oompnny alone could havo suci; Kvon if It be, as was ar^uo.l l>y

; counsel in the nn^, that cumulative ramcc dies aro provided by section &2, that is to < say if tho company and rawnger can nliko ■ suoa defaulting sharoholdor, then proceedings instituted in tho name of tho company—although fthoy rauy be at the in* glance of tbo raiiw»R©f— vroulcl certainly l>o the «et» of the company. I ftppre* hand also thaMho diipoftitkm of forfeited sharw rauit; be effected tnd controlled by tlio company indi^dualljr, yet became it hooomeg tho »ta tutoty' duty oft !»e mina* (/vr to keep aod rtetify the register, (section 83,) Section 66 directs Mm to reinstate therein ft shttreholier who l>y payment has redeemed his share*. Butt whilst therefore (he manager has but ono and only one mode of "sue ing" of obtaining a judgment, halms, in my opinion, more than one means providod for " recovering" tho fruit* of his judgment—the M debt/* plus the coats of action. If my views b& Bound, tho Innnpnngo of seotion 90 will, I think, beeomcintelJigiblc.Tho liquidator having snod ns tho manngor ** mi«ht hare done," would bo entitled to adopt o«o or more of the courses or moans indicated, taking thorn to s»oh order, as boing consistent with law and practice of onr Co\irts, would bo convoniont to ensure tho '* rccovory" of the debt. It ,19 truo tho manager must proceed by sacing within fonrtoon days- from tho date upon which tlko call bocame duo, but after nwoh (consideration' I agree with Mr Fishor (lint seotion IX) contemplate* nn unqualified! an unrestricted right in the liquidator to sue ii» lii» own unnw rather thai* in fthftt of tlto- com piny, tt confers upon Hint officer tho powers which the m«nngcr wnirldf hnvo boon com pot out to exercise h«d ho thought fit; m other, words tho term •* modes'* there applied lion rufi'ronee ra.hfr to tlie* chtirwetcr uncf form ryf live pTOH^eeilinflft nvailiiblcJ fnr i »icing »nd rvoorering, than to- tlio tinvo wiiliwi whifrfi the? mn-n bo oomment'Oil. It in olivion*, ] tfrink that tho legislature nit-rnd'i'd by sw:t,iotH 9O.imd oil, to furnisli the liqurhlor with an cany method for re* con»ri-i>,' impoid <i»lln r to relieve him from intrhrnte proofs, to ensum paynwiit by roenfeitn»i»t ohiroholih'r*, iiml so to throw upon the rciwtw? bolv of ahareholders in fair proportions the Imbifitresof the com* pivii". If, .howuvcr, I.lm*e nwsapjilio«l tire mnjiimn emrnciated by tho em'npiit jirr'rsta mined, if t liiivm misfonstnred th<» Afi of hho Letiulnturi»» section 9> must, I I'cnr, provti abortive because ii> no oaso I !ipj>rehei»l could Ihe licj'iiddtor bi» appointed 1 and protsecKnua bo c un-nt-nood wilhin the foi>rt»«pn di»ys Hmitd f> iho iwi-nnger.. T>td thoi» tho registnui >n of the fnifH'Vr operato as a release to the (tefeii'l-uit ? Meliuf can only lie ac-q'ii.-ed by ro-KbLruki»>i> or by ir«iisf«frin'4 to tho .company,, nmt ol)tn»nii>ir fro-m tho mana«cr n receipt f«»r the ins'r.-iimMit. The rcc i'pt would, in the alwonee of repistrw lion nnd nt. the cx|iiriitioM of jteven days IVoiß' its dnte, be conolunivo eridonee of the assignment sectioT s 13, 27, 31 and 32. Fn thin ci«f, however no receipt win obtained. It Wns nevertheless arguo.l that registration effected in Jr.nuary last would dispense with the receipt, ftnd- because in tho regUtor it wns made to rvluto bock to the Jute of the d icuniont am) its presentatiun to Munro, the dcfi'iident would from tlwtt timi 187ff) Iw rolievec) of his shiuen. It seems to me that a* between tho compimy and an iitdividual »harolioMor tho date of the uiHtritnient is iinmateriitl, tho value a* tac-hes upon, and oannot ju-eruo nntil, tho prvsemation for registmtion, a presentation uvule, be »t rememberod r vrhon thw register i» Jegj'lljf available for rectification. Aasuinin.;, thon for lb» moment that regiMfratioii wwihl be rqiuivtilent to-, and inii^ht d speine with, a reeuipl under seotion $1— If tho dulo of libo presentation of tho transfer in this nuso was to b» arcepteii a» the ante of registration 1 , the defendant is at once met with tho winding-tip proceedings then pend nir, and nino by action 20, which absolute' j prohibits rhw trnnsfeitng of »'i'ires under fliieh cfrcumstanoos. On tho ot!ior r bund, if n'eiitrntion is to operate from the momenr nf'rf s fffTeetuation in Jainwry, thon its the cull now sued for was ovcrdrjOr the de^'ifdant would be difiquUifred from asafL-mng, and tho net o' tho manager in n^isterfng would become wlCm vires und of no arail. Tho mnnnger is a statutory ofTieor, for inter alia the purposes mcnli mod in sootion 31» and so far onn net independently of tho directors, bnt to bind tho company he mwst fceop wilhin tho four corners of tho Act. Ho wns theroforo incompetont to wn?ve tho enll. It is cloar that the directory neither directly ordorod or sanctioned a depnrtaro. from tho aootion. As in Augnst tho dofendnnt was nwnro of tho petition then ponding, nnd the omhnrgo ptacod opon tie register ; nml as in January ho must hare been aware of tho cnll having been struck nnd then overdue, he could not tafco advantage, I think of tho manngor's irregularity in registering. In faco of section 20 tho pay* mont and mceptnnco of tho transfer fees will not nvnil tho defendant. Above nil, the rectification order will, I apprehend, prova fatal, to tho second branch of defendant's ease. Tho removal of the company's nnmo from tho rogistor, nnd the substitution of tho deferdant's name by ordor this Court upon proof of tho invalidity of tho transfer from tho de* fi-ndint to tho company will, I con ceive, ro^ore the defendant to tho position he occupied prior to his surrender to the company, nnd to reudcr him little

to tho culls now sued for. Judfijmont for tho plaintiff must bo pronounced, with £G 9s costs. _