SALE OF SHARES
QUESTION CONCERNING ALLEGED MISREPRESENTATIONS
(By Telegraph—Press Association)
DUNEDIN, This Day. An interesting point making it clear that a shareholder who claims he had been induced to buy shares by misrepresentation cannot deny liability for shares until he has repudiated the contract and had his name removed from the share register, was revealed at the Magistrate’s Court when Mamaku Forests, Auckland, successfully proceeded against J. Steedman, Dunedin, in a claim for £6 as 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 of the public.
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Bibliographic details
Nelson Evening Mail, Volume LXX, 26 March 1936, Page 2
Word Count
152SALE OF SHARES Nelson Evening Mail, Volume LXX, 26 March 1936, Page 2
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