SHARES FOR BUTTER-FAT

New Zealand Herald, Volume LX, Issue 18388, 2 May 1923, Page 8

SHARES FOR BUTTER-FAT

DEMURRER BY SUPPLIER. '■■'-.

CASH WANTED FOR PRODUCE

JUDGMENT FOR - PLAINTIFF.

[BY TELEGRAPH.— PRESS ASSOCIATION.] CHRISTCHUBCH. Tuesday. V A judgment of interest to dairy farmers has been delivered by Mr. Wyvern Wilson, S.M., in a case in which. R. Heming. ' way claimed £14 from the Eaikotira Cooperative Dairy Company, the plaintiff • having declined to accept',- shares in the company in lieu of this money. : Some time ago the. company put in' a ",•' {: ■': butter plant, and it was agreed that the ' money should be raised by. a. further issue of shares, suppliers to take one share for each two cows milked. The : plaintiff who is a shareholder in the defendant ■ ' company and a supplier to the factory - declined to take the shares in lieu of cash for butter-fat' sold. • ;-, | In the course of his judgment, the magistrate said the legal position was well expressed by Justice Salmond in Donald v. : Normanby Co-operative Dairy Company, Ltd. : "A company cannot issue or allot shares except to a person who. has-' agreed with the company to accept them. Shares have their solo , origin in a con- '" ■'■ tract between the company and the person to whom they are originally issued." In the present case the plaintiff had never contracted to take up more shares and the money , held by the eompanv should bo paid to him as the balance the. price of the butter-fat' sold by him. : : - : Judgment was accordingly entered for the plaintiff for £14, with costs.' ',