DUTIES OF DIRECTORS.

New Zealand Herald, Volume XL, Issue 12266, 9 May 1903, Page 2 (Supplement)

DUTIES OF DIRECTORS.

A GENERAL DESCRIBES ROW HE PERFORMED THEM. Some sidelights upon the duties of direo tors of public companies and how they ar» performed were afforded in the London Bankruptcy Court lately, when Mr. Registrar Hood resumed the inquiry in conntction with the failure of David Payne and Co., Limited.

Lieut.-General Sir James Bevan Edwards, K.C.M.G., C.8., the chairman of the company, was examined. He stated, in reply to Mr. H. Brougham, the Official Receiver, that he was appointed a director of the company in 1900, and remained on the Board until the winding-up order. H« was also a director of four other companies in which a Mr. J. Yardley Johnston was concerned. _ He became a director of David Payne and Co., Limited, entirely upon the nomination of Mr. Johnston.

The witness went on to state that he had no knowledge of the business, which consisted of making printing machines, 'except what he derived from Mr. Johnston. Ten shares of £5 each were presented h ~ Mr. Johnston to tfie witness when he became a director, and he held them stilL He frequently saw Mr. Johnston on the business of this and other companies— sometimes every day. Asked if he had given any personal attention to the business carried on by David Payne and Co., Limited, Sir James said ha visited the works, and was especially interested in the manufacture of the Die Press.

Did you take any actual part in conducting the affairs of the company? I was chairman.

The witness added that he did not act independently. He assumed that Mr. Johnston was acting for the good of the company, and as that gentleman had a knowledge of the business he left it tc him, He (Sir James) did not, however, acquiesce in all Mr. Johnston's suggestions. He and his family had invested £10.000 in the Johnston companies. He had seen accounts but no balance-sheets, and it was not until the liquidation of the company that he became aware there was a large deficiency of assets. In conclusion Sir James said he had never received one penny piece from the company. So far as the qualification shares were concerned they were set off against money Mr Johnston owed him. The inquiry was concluded.