PAYMENT OF DIVIDENDS.

New Zealand Herald, Volume XLIII, Issue 13226, 11 July 1906, Page 6

PAYMENT OF DIVIDENDS.

j [BY TELEGRAPH.— ASSOCIATION.] i '■'..-■..■ WkxlingtoN, Tuesday. i The case of Cowlishaw and others v. the Press Company, Christchurch, was resumed in the Appeal Court to-day. Mr. Hosking continued his argument on behalf of the defendant company. He contended that the plaintiffs were debarred from bringing this action on account of their acquiescence in the actions of the directors of the company when the profits were put into the business instead of being declared as dividends. He further urged that the directors were justified in replacing lost capital out of the profits before declaring dividends. Mr. Hosking concluded his argument at the luncheon adjournment. Mr. Acland, counsel for Mr. R. H. Rhodes, who was joined ais a defendant as representative of preference shareholders in the company, then addressed the Court briefly" on the construction of the articles of association of the company. He. contended that under the articles the directors had the absolute right before declaring dividends to write off any amount they pleased for depreciation, either of plant or goodwill, amd that in so writing off depreciation they acted bona fide. Then the shareholders had no right to complain of their action, and the Court could not interfere. At the conclusion of Mr. Acland's argument. Mr. H. D.Bell replied on behalf of ° the plaintiffs, and judgment was reserved.