COMPANIES' ACTIVITIES
POSITION OF CREDITORS RECENT COURT DECISION "It seems that merchants will have to inspect the articles of association of a limited liability company before trading with it," said the president, Mr. A. G. Lunn, at a meeting of the Auckland Chamber of Commerce Council yesterday when a recent decision of the Supreme Court on liability to creditors was read. The case was one in which a dairy company had carried on a store, although its articles of association did not allow for this. When the company went into bankruptcy, the Supreme Court held that the creditors had no claim against the company for debts incurred in connection with the store.
The council decided to refer what was described as the injustice of the situation to the local advisory committee set up in connection with the Companies' Amendment Bill.
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New Zealand Herald, Volume LXXI, Issue 21983, 14 December 1934, Page 15
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140COMPANIES' ACTIVITIES New Zealand Herald, Volume LXXI, Issue 21983, 14 December 1934, Page 15
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