SHAKE PURCHASES
IMPORTANT TEST CASE
MAGISTRATE'S RULING. Per Press Association. DUNEDIN, March 26. An interesting point making it clear that a shareholder who claims lie has been induced to buy shares by misrepresentation cannot deny liability for the shares until he has repudiated the contract and had his name removed from the share register was revealed in the Magistrate’s Court today, when Mamaku Forests, Auckland, successfully proceeded against J. Steedman, of Dunedin, in a claim for £G as the balance owing on shares. . Misrepresentation was alleged to have been made by the company’s Otago salesman. Counsel stated that this was a test case, as twelve similar actions • were involved. The Magistrate, entering judgment for the company, said the legal position was clear, and before a shareholder could institute such proceedings he must repudiate the contract, removing his name from the register. The position might seem harsh, but it was necessary for the protection oi the public.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/MS19360327.2.13
Bibliographic details
Manawatu Standard, Volume LVI, Issue 100, 27 March 1936, Page 2
Word Count
156SHAKE PURCHASES Manawatu Standard, Volume LVI, Issue 100, 27 March 1936, Page 2
Using This Item
Stuff Ltd is the copyright owner for the Manawatu Standard. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in