AFFAIRS OF COMPANY.

New Zealand Herald, Volume LXIII, Issue 19502, 4 December 1926, Page 14

AFFAIRS OF COMPANY.

A WINDING-UP PETITION. MANAGING DIRECTOR'S MOVE. FAMILY DIFFERENCES ALLEGED. , PROMINENT DUNEDIN CONCERN. [BT TELEGRAM. —OWN CORRESPOOTENT. ] DUNEDIN. Friday. In the Supremo Court to-day Mr. Juslice Siro heard a petition by Alexander Milne Begg praying that the company of Charles Begg and Company, Ltd., should be wound up by the Court uncier the provisions of the Companies Act. Mr. Hay, who appeared for plaintiff, said that Alex. Begg had been managing director since the inception of the present company. In the sixties the late Charles Begg established the business lor the sale of musical instruments, and it went on nntil he died in 1897. In 1899, the family at that stage consisting of the widow and her children, it was decided to float the family concern into a public company. Tho assets wero then £27,000. In 1903 the company was reconstructed and the shares distributed among members of the family. Tho assets had increased until to-day they wero worth £158,588. In his affidavit, Alex. Begg claimed that the true Valuo of tho assets would be somewhero about £200,000. Throughcut the period the petitioner had bean managing director of the company be claimed that tho success of the business had been largely due to his efforts. 'At the present time he found himself iu an unfortunate position. Advances to Shareholders. Mr. Hay went on to trace the 'history of the company, and said that the company, being a family concern, had, with the acquiescence of the shareholders, made advances to certain of the shareholders from time to time against their holdings in the company. At the present time the petitioner owed to the company £12,000 in respect of such advances. Other membors of tho family had &l!to had advances. The company now demanded from the petitioner payment of the loans made by tho company to him, and had commenced an action to recover the same. Petitioner had confessed to judgment as he was not m a position to repay the money without .having resort to tfc.e shares held by him in the company. The?ie N shares he assesed at a minimum value of £41,776. All the shareholders knew that the petitioner wa3 obtaining the advances, as these appeared in the reports of the auditors. . It was further suggested that the affidavits of the others concerned showed that the purpose was not really to claim the £13,000 (tho £12,000 and interest). The whole affair had arisen out of feeling between tho members of the family. There was no trouble until the will of Margaret Hunter Begg was considered in 1922. Only since then was there any indication of trouble. Comment by the Judge. Mr. Hay referred to the minutes of meetings of the company. He suggested that His Honor would come to the conclusion that Alex. Begg was thoroughly conversant with the affairs of tho company, and knew more about them than the others. As recently as this morning Alex j Begg had offered to retire from the directorate and have the company formed into a public company, so that he could get his money in a few years. Counsel suggested that that was as far as Alex. Begg could reasonably go. In his affidavits Mr. Begg said that orders of his had been countermanded. His Honor;. Why . doesn't a wealthy company like this settle its difficulties in private ? It is washing its dirty linen in public. Mr. Hay went on to say that Alex. Begg had given a life service to the company and was entitled to some recognition of that service. The petitioner could go no further than njake the offer to retire from the directorate and make the company a public company. < \ After the luncheon adjournment it was announced that an agreement had been reached between the parties, and would be signed for presentation at the Court on Tuesday. .