ALLOTMENT OF SHARES.

New Zealand Herald, Volume LXIV, Issue 19675, 29 June 1927, Page 12

ALLOTMENT OF SHARES.

CLAIM FOR PAYMENT FAILS. APPLICATION CANCELLED. [by telegraph.—own correspondent. ] WELLINGTON. Tuesday. A claim for £l6O in respect of a number of £1 shares in tho New Zealand Meat Packing and Bacon Company (Co-opera-tive), Ltd., now in liquidation, was heard before Mr. W. G. Riddell, S.M., in the Magistrate's Court to-day. The defendant was Thomas Watson, of Okoroire. Mr. J. Morrison, who appeared for the company, referred to the evidence of the defendant, taken at Hamilton, and said defendant was apparently persuaded into signing an application form for shares hut repented of his action immediately afterwards. He did not succeed in re--1 covering the form from the canvassers and the form was irt due course forwarded to the company, the canvassers apparently making no comment on the defendant's action. Shares were allotted to Watson, who then evidently realised that his attempt at withdrawal had been insufficient. and he wrote to the company stating that he had intended to cancel the application form. It was only after he was allotted the shares that he took up the matter directly with the company. A former secretary of the company gave evidence that, the notice of allotment of (he shares was posted to Watson. No notification of the defendant's withdrawal was received before the allotment. It. was customary for intending shareholders to pay 2s per share on application and 2s on allotment. Mr. A. J. Mazengarb (for the defendant) : Why did you allot these shares without money ? Witness ; As with a great many other companies a big drive was going on for shares We allotted them and hoped to get the money

Mr. Mazengarb said defendant signed the application form, explaining that he had no money He signed an order on a dairy company. Immediately after signing he told his sister what he had rlone and she recovered the order on the dairy company and tore it up, thinking that it was the application form and that her brother had finished with the whole matter. Later Watson wrote to the com pany stating that he was not a shareholder, and apparently the company had then seen the position and marked the application "cancelled." The magistrate said it was obviously the intention of the defendant to cancel his application and lie had notified the canvassers ,to that effect. If his instruction had been carried out the shares would not have been allotted. Judgment was given for the defendant.