THE IMPERIAL DRY MILK COMPANY.

New Zealand Herald, Volume XLII, Issue 13048, 13 December 1905, Page 6

THE IMPERIAL DRY MILK COMPANY.

:■' '■ APPEAL ALLOWED. \ ■ IMPORTANT TO NEW ZEALAND. [from our own correspondent.] ~.."■ V -London, November 11. Is important judgment affecting a New Z jaland company was given by the Court of Appeal oh Wednesday, when ' the case of Hatmnker versus . the Imperial : Dry Milk Company . and others, came before Lords Justices Yaughan-Williams, Stirling, ; and Cozens-Hardy,, on the appeal of the defendants from an order of Mr. Justice Kekewich, in the Chancery Division, granting an interim : injunction restraining the company and its directors from carrying into effect an agreement for the purchase of a business and factory in New Zealand for £1",000. The plaintiff, who sued on behalf of himself and other shareholders, alleged that the vendors held-a majority of the shares of the company, and in passing a resolution aipproving the sale they were acting in their own. interest and not in the interest of the company. This allegation was denied. Mr. Gore-Browne, K.C., and Mr. Mark j Romer, appeared in support of the appeal, and Mr. H. E. Wright for the respondent. During the course of the argument, Lord Justice Vaughan-Williams suggested that it was in. the interest of all parties that the contract should go through, and that there should be a reference hi order that it might be seen whether there should be any reduction in price or not. Mr. Gore-Browne said that the appellants , were ready to accept that suggestion. Mr. Lawrence, however, said that his client could not agree to the suggestion. In the result. Lord Justice,"VaughanWilliams, in giving judgment, said that in his opinion no " prima facie " case had been, made out by the plaintiff that the bargain which the conipaftvy had entered into with some of its directors as vendors, was- so manifestly and of so improvident a character, that the Court ought to say:that the shareholders, the majority of whom were in favour of the purchase, were acting in their own personal interest, and against the interests of the company. . He thought the appeal must be allowed fund the interim injunction discharged. .." .

Lordjj Justices Stirling, and s-Hardy concurred) and,the appeal was allowed, and the injunction dismissed accordingly. ; It will be observed that the Imperial Dry Milk Company has. therefore, won this case in which a number of prominent New Zealaaders and New Zealand firms are interested. In the first trial, before Mr. Justice Kekewjch, Mr. Hatmaker was successful in his application for an injunction. This naturally caused a cessation of the dried milk business in New Zealand. The judgment, given on WednerfTay was in favour of the Imperial Dry Milk Company, and will enaible the 'business to be re-started in NewZealand and Australia.