ACTION AGAINST COMPANY

Nelson Evening Mail, Volume LXVI, 30 November 1933, Page 4

ACTION AGAINST COMPANY

SHAREHOLDERS’ CLAIMS NAMES REMOVED FROM REGISTER (13y Telegraph—Press Association) AUCKLAND, 2Sth November. Right shareholders in the _ Premier Tobacco Company (New Zealand), Limited, took action in the Snpieme Court against the company and William Samuel Russell, stated to be the promoter and former director of the concern. Plaintiit's, who were represented by Mr Mackav, asked that their contracts to take shares in the company should lie rescinded, that their names should be removed from the register of the company, and that they should lie refunded certain sums of money paid tor shares. Defendants were represented by Mr V ilson. Mi Justice Smith was on the bench. In accordance with an agreement between counsel, the pioceedings against Russell, who was stated to be in England, were adjourned sine die, to be brought on after seven days, notice after his return to New Zealand. Mr Mackav said the actions arose out of applications by each of the plaintiffs for shares in the defendant company, which was represented to be •a concern for the manufacture of tobacco and cigarettes, and was registered in March, 1931. The prospectus on which the shares were sold was a highly colourful document, and represented that the company was formed with a strong financial group in .London known as the “Eeronnc Syndicate.” Plaintiffs’ shares were all purchased as a result of this and other representations in the prospectus. Since the proceedings were instituted the defendant company had gone into liquidation. The liquidators, however, had agreed that the plaintiffs were entitled to the cancellation of their shares, and judgment against the company for the amounts claimed. They only asked that the amounts claimed should be proved. Evidence was given by George Parkes, secretary of the defendant company from its formation until its liquidation. He said that jjie company's register showed the amounts paid by the plaintiffs to be as follows: —Edward Michael MeCinley £312 10s, John Martvn Wilson £SOO, Professor Algernon Phillips Wi thill Thomas £3OO, Mrs Sarah Elizabeth Morris £57, Oliver Keith Lamb £SO, Otto Richard Buchanan £IOO, Alfred Henry Lindon Madderford £lB7 10s. Charles -Medley £125. Witness said the shares in the company were jiow, valueless, and were absolutely unsaleable. The company went into liquidation on 20th November. By consent of the liquidators as expressed by Mr Wilson, his Honour rescinded the contracts to take shares and directed that the plaintiffs’ names should be removed from the register of the company. He also entered judgment against the company in favour of each plaintiff, for the respective amount paid to the company on the shares acquired. The question of costs was reserved. It was made clear that the decision in the proceedings against the company would not prejudice the case of the defendant, Russell, in any future litigation.