SHAREHOLDER'S CLAIM.

New Zealand Herald, Volume LXIV, Issue 19721, 22 August 1927, Page 12

SHAREHOLDER'S CLAIM.

SHIPPING COMPANY FAILURE

MISREPRESENTATION ALLEGED.

COURT RESERVES JUDGMENT.

The case in which John Leydon, storekeeper, Waiharara, North Auckland (Mr. Finlay and Mr. Thomson), claimed from the Northern Wairoa Steamship Company, Dargaville (Mr. Greville), £lO ss, the value of 21 shares, and £25 general damages was concluded in the Supreme Court on Saturday before Mr. Justice Stringer. The steamship company is in liquidation, and plaintiff also sought removal of his name from its | share-register on the ground that lie had become a shareholder through misrepre sentation by the accredited canvasser. For the defence Mr. Greville denied that any false representations had been made. When plaintiff was allotted his shares the company was not in an unsound position, arid there was no attempt to conceal or misrepresent its affairs. A. M. Seaman, president of the New Zealand Society of Accountants, said it would not be correct to say the company was in an unsound position when plaintiff purchased the shares. A company could not fairly be described as either sound or unsound financially until it had actually been in operation. The procedure at the meeting at Waiharara at which misrepresentation was alleged to have taken place was described by Charles William Williams, formerly shipowner and director of tho company, who had canvassed for shares for it. He Claimed he had laid the facts fully and accurately before the meeting. He told them the company had about £IOOO in hand and that there were over 12,000 shares. Plaintiff was the first to tako up shares. Witness asserted to Mr. Finlay that he had shown prospective shareholders original copies of the memorandum of association. I'he pasted slip over part of it was usually put oir after the purchaser had seen the memorandum. He would go back to Waiharara to-morrow and get as big a welcome as ever. He denied that large blocks of dairy' company shareholders had refused to pay calls on the ground that witness had falsely repre sented that the dairy companies had taken up shares in the Northern Wairoa Steamship Company. Murdoch McKay Lloyd, who was present at a meeting addressed by \Villiams at plaintiff's house, gave corroborative evidence. Judgment was reserved.