WINDING-UP OF A COMPANY

Nelson Evening Mail, Volume LXVI, 19 August 1933, Page 7

WINDING-UP OF A COMPANY

■l, SURPLUS FROM CALL

QUESTION OF DISTRIBUTION

(By Telegraph—Press Association)

WELLINGTON, This Day,

A question, involving the liability of a liquidator under the Companies Act to distribute certain moneys upon tho winding up of a company was answered by Chief Justice Myers in a reserved judgment delivered in the Supremo Court. The case concerned the National Portland Cement .Company Ltd. (in liquidation), the subscribed capital of which consisted of 25,000 shares of £1 each credited as fully paid up, 22,166 shares ealled up prior to liquidation to the of 7s per share, 1500 to the exteiit'.pf 6s per share, and 4280 to the ejrtentqof) ss' per share. ; His//Honour said that the available assets (apart from the uncalled capital) gj> the commencement of liquidation was not sufficient to discharge the debts and liabilities of tho company, and the cost of winding up, and it was therefore necessary for a call to be made. Accordingly a call was made under the Companies Act of 6s per share on all shares already teferred io as having been at the commencement of liquidation called up to tho extent of 7s. 6s and 5s respectively. The amount received by the liquidator in respect of this 5s call had been more than sufficient to make up the deficiency, and there was now a surplus in'the hands of the liquidator. The question'was now a surplus in the hands of/the- liquidator. The question was how that surplus was to be distributed. After dealing at some length with the law as affecting tho case, his Honour 'held that,the surplus was to be returned to the shareholders who had paid the call in such a way as that, as nearly as might be such shareholders would in the result have contributed to the amount required to make up the deficiency, sums proportionate to the capital paid, or which ought to have been paid, at the commencement of the winding up on the shares held by them respectively.