A COMPANY'S BUSINESS.

New Zealand Herald, Volume LXIV, Issue 19729, 31 August 1927, Page 13

A COMPANY'S BUSINESS.

SHAREHOLDER'S ALLEGATION

STATEMENTS NOT ESTABLISHED. Allegations of misrepresentation by the Northern Wairoa Steamship Company, Limited, in regard to its financial position during a campaign to increase its share capital were held by Mr. Justice Stringer, in the course of a reserved judgment given in the Supreme Court yesterday, to be not established. The caso was one in which John Leydon, storekeeper, of Waiharara, North Auckland (Mr. Finlay and Mr. Thomson), proceeded against the company in liquidation (Mr. Greville), for the recovery of £2l, the value of 21 shares, a>.J for the removal of his name from the share register. His Honor said that action had been taken by plaintiff on the ground that Captain C. W. Williams, the accredited representative of . the company, had stated it to be in a sound financial position, while canvassing for shares in the North Auckland district. It was alleged that the printed document displayed by Captain Williams during this campaign was not the registered memorandum of association, and that the company was not sound financially. In both instances the weight of evidence was against the allegations of plaintiff. The Capital which had been subscribed by the shareholders was intact, in so far as it had been reduced by legitimate expenditure on preliminary expenses. In nj reasonable technical or popular sense could the company bo said to be otherwise than financially sound at the time the alleged misrepresentations were made. Judgment would be for, the defendant company, but having regard to the loose and irregular manner in which the business of the company had been conducted no order would be made for costs.