A DEAL IN SHARES

Nelson Evening Mail, Volume LVI, 20 April 1923, Page 7

A DEAL IN SHARES

(United Press Association). AUCKLAND, April 19. Judgment for the defendants was pronounced by Mr Justice Stringer in the Auckland Supreme Court action in which George Roy William Axacdonald sought a decree against Wairakei Limited, cancelling the allotment to him of 3000 shares, and an order that the company should return the money paid by him in respect of such shares. His Honour held that the statutory conditions prece•dent to the valid allotment of shares under Section 95 of the Companies Act had not been observed, and tjjte directors had improperly proceeded with the allotment. The' plaintiff was entitled to repudiate his contract and take shares on the ground that the condition he* laid down had not been fulfilled, namely that 40,000 shares must bo applied for. The Court held that such a condition meant applications upon which allotment could properly be made, and" the elimination of 3000 shares applied for by C. L. Johnstone, whose cheque was dishonoured at the date of allotment, made the condition unfulfilled, but the plaintiff, knowing the facts, delayed too long in taking action. His long delay, coupled with his' subsequent payment of moneys duo or, the shares, and his having acted las a director of the company, operated las an election on his part to retain the shares. Judgment was therefore given fo>- t!)« defendant company.