COMPANY LAW.

Nelson Evening Mail, Volume XLVII, Issue XLVII, 4 March 1912, Page 6

COMPANY LAW.

AN INTERESTING POINT

Art interesting point in company Jaw was rais&d in a summons taken out by the Official Liquidator (Mr A. Simpson) of the Marlborough Brewery and Aerated Water Company, Ltd., to decide whether Mr D. Brand was to go on the list of contributors in respect of 1720 shares for which he had ma do aplication on the formation of the company, when ho was clerk in the office of Messrs T« K. Macdonald, Wilson, and Co. It appeared, .says the "Post," that Macdonald also had signed the company's memorandum of association for 1720 shares, and the question arose whether he should not ::i«~o be placed on the list of contributors in. respect of the 1720 shares. Legal discussion on the question, which stood partly argued, was resumed before Mr Justice Sim in Chambers. After argument the question as regards Mac<icra!d was he'd over for further consideration, and his Honor veserved judgment in Biand's case. It was mentioned that if Brand was placed on the list as a coi.tributor for 1720. the question would ::• ■-• :-s to his right to be indemnified by -Messrs Macdonald and Wilson in respect thereof. The chief facts leading up to the present proceedings are as follow :On 27th August, 1901, Brand applied for 1720 shares, and paid the application call of £B6, by cheque of Macdonald, Wilson, and Co. On 19th November, 1901, Brand purported to transfer these shares to the company, and the company refunded to Macdonald, Wilson, and Co. the application money of £B6. It was conceded by Mr ('. B. Morison, counsel for Brand, thatsuch a transfer was ultra vires and void. In effect it would be that if Brand was an original shareholder he would remain a shareholder. Counsel, however, contended tliat Brand applied for shares only as an agent and trustee for Macdonald or the firm, and should not be held liable. Mr A. R. Meek appeared for the official liuuidator, and Mr E. K. Kirkealdie for Mr Wilson. Mr T. K. Macdonald was present, but was not represented by counsel.