DAIRY COMPANY'S CLAIM.

New Zealand Herald, Volume XLV, Issue 13844, 2 September 1908, Page 8

DAIRY COMPANY'S CLAIM.

J MILK SUPPLY LIABILITY. AX IMPORTANT DECISION. | JcnGMSXX was given by Mr. B. W. | Dver S.M., in the Magistrate's Court yes- ) terdav to the case; in which-the Matakana ; Co-oner alive Dairy Company, Ltd., claim- | ed from -James Wotherspoon, of WhangaI ripo £50 5s Id, as being the amount• ot j foes 'sustained by the plaintiffs by reason {of defendant-. jailing to supply toe pre- | scribed amount ,<rf bnWer-fat to, terms o* | the articles and amended articles of the | association. Mr. J. Alexander appeared 1 for the. plaintiffs, and Mr. E. C. Bloomi seld for the defendant. _ . | The "plaintiff company is a limited laj bility company, duly incorporated under ; the Companies,' Act, 1832.. with a capital I of £5000, divided into 5000 shares- of £1 1 each. Prior to June' 1, 1905, defendant { applied tor and was allotted 20 shares in j the "company, and was- duly entered -upon I the company's register. The main poiai I at issue was whether a dairy company can, j by amending' Its articles of assoclailioo, j | compel a sha-rehewder, whose shares have , b&en fully share-bolder, whose shares for- , b&en folly paid-up, and to which no, fur- j . tier liability oi any kind attaches, to take i | an additional number of shares carrying a j I liability to supply milk to the company, i ) aEd when seen additional shares have: been ' ! paid-up by such milk supply, whether the j - company can 3ga.h? allot an equal number j ! of shares to the shareholders with a- simi- | ] 1.-vr to ilk supply liability, and so os: frosn I I rime to time unit.ll the whole- of the (tapi-'l » tal of the company lias . been subscribed j i by such continuous allotments to Jibe on- 1 I giaal sliarehoideirs? | His Worship, In giving judgment, said: . | •'last by the original articles,-each, share- j . | holder was to hold as many shares as he j | milked cows, sricfa shares to be ■jta. ; id by I ! tee payment of 2s 6*3 tier share on appli- | f cation, and the balance by toe dedisctio-n j sof |d per lb of batter-fa; supplied by him I to the company until toe amount of . his j I shares were fully paid up,. . If the defen- | | dazst ceased to.supply one cow's milk tor t each share, the company co-aid . call on j I bias to "pay the balance due is cask. . 'On j | Decenciber 19, 11915. the defendant's origl-'i I nsl shades 1 were felly paid-up. Oil March- ; ■ I 38. 1907,': the. '.defendant was alhstted 20 i * new shares under the- amesded article 8 I [' (cj, which prendided ■ that as ew>n •as toe ] ? shares' of any ''shareholder should - be paid ] I up, as provided' by original: .article 8. it i | shoeid-he- lawjul for the directors to: allot ' I to hrai 3»re shares In the company not i I less in number than those oirginally allot- ■ » ted to him, to be paid for by toe deduc- j ] \~K-n of Id peir lb on batter-fat. and the i j shareholder should eosliaoe to talte a simi-1 I lar -Eiaaaber oif new;.shares""from, time to I I rinse as toe shares held by him.were paid I | up. and si;or-Id pay jVt toe. same, as lastly, i i provi'tJed, mita the liability of toe com- j I psaj' was paid up. The present a<rtkm i i was laid on articles 3a and Sb. to recover i iaßegird loss '•' through defendant ifaSing to i supply the .mjuirsd cuantity of hatter-fai. I* supply t&e 15507, the directors declared a j Oa July i, 19(77. the directors declared a ' drvidsscd of five per cent, on all'irdHy paid ] up shares- and in September,-. 1907, defen- ] . daat-'-was paid! a dividend of £1 :3135. The j f defendant, while admitting that, he failed j I to supply a? much milk as be. should have j "f supplied render toe .amended inrtliites, cos- j j "tended : tost, .those .amended arti<Jss were') .|. : ultra - vires,- and, therefore, invidid. He. j a {Mr. IDj-er'i .t'tossghfc that, toe 'ammOnifi I I tisticjles, bad knutd ihe liabilities of. the] | shanEiholders beyond toe. liability, limited ! j m tl:e memorandum of; associalikm. . and j $ thai;: they.- were, therefore, ultra irires of 1 I toe memorandum and ' void. Judgment | |, wocld toereibre be lor the defentlant with j costs/'