ALLOTMENT OF SHARES.
A HOLDER'S GRIEVANCE.
A somewhat unusual case eamo before Mr. Justice Edwards in Chambers yesterday, when John Dawson applied to have his name struck off the register of the Shortland Flat Gold Mining Company, on the' ground thai it had been represented to him before ho took his shares that of the 80,000 shares offered to the public nearly all had been disposed of. The affidavit evidence showed that 55,000 shares had been allotted, and application money had only been paid for 16,500, and allotment money for 2000. It was contended that tho invitation to take shares referred to in the printed form was a prospectus. The applicant claimed to be relieved of the shares and his namo struck off the register, and his money returned on two grounds—(l) that ho had been misled as to the number of shares subscribed for; (2) thar. the printed form was a prospectus, and liar! not. been filed with the registrar of joint stock companies, as provided by the Companies Act, and therefore. the whole amount offered to the public should have been subscribed for in cash, which was not done.
The defence was that it was quite true that 80,000 shares were represented as having been applied /or, that the company's agent averred that he had verbal applications in addition to written applications for about 80,000 in all, but that the verbal applications (some 34,000) were withdrawn after he had made the assertion. The company also maintained that the printed form on which the applicant relied as being a prospectus was not a prospectus. It was also . contended that in any case the agent, if ho made any representation as to the number of. shares taken up, did so without tho authority of tho company, and without .its knowledge,' and the- company allotted the shares in ignorance of such representation having been made. Mr. Burton aboard! for the> applicant, and Dr. Bamiord for the company, ,-y v Judgment was reserved. .., ; "./'.•;-.■« "\-
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Bibliographic details
New Zealand Herald, Volume XLVII, Issue 14343, 13 April 1910, Page 5
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331ALLOTMENT OF SHARES. New Zealand Herald, Volume XLVII, Issue 14343, 13 April 1910, Page 5
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