LOTTERY SCHEME

New Zealand Herald, Volume LXXII, Issue 22223, 25 September 1935, Page 18

LOTTERY SCHEME

ACTION BY COMPANY UNPAID CALLS ON SHARES SUCCESSFUL CLAIM MADE international Concessions, Limited, brought a claim for £BO 7s 6d in the Magistrate's Court yesterday against Charles Edward Fearon. Plaintiffs claimed £75, which, it was alleged, defendant, as a former member of the company, owed for three calls of £25 each on shares in the company, of which he was the holder before forfeiture. A claim for £5 7s 6d, representing interest on the calls, also vras made. Mr. W. R. McKean, S.M., presided. Mr. Goldstine appeared for the company and Mr. lader represented defendant. A petition hy shareholders for the winding up of the company by 'the Supreme Court was recently dismissed by Mr. Justice Fair. In an action brought by the company in the Magistrate's Court last month, claiming moneys owing on unpaid calls on shares, Mr. McKean found in favour of plaintiffs. The company, which was formed to conduct lotteries in foreign countries, wont into voluntary liquidation last January. Evidence was given at the hearing yesterday by Ronald Mason, the former secretary of the company, who was called by Mr. Goldstine. After witness had. been questioned at some length by Mr. Indor, regarding the history of tho company, Mr. Goldstine objected to the cross-examination, on the grounds that the evidence obtained was extrinsic, and therefore, on a House of Lords decision upheld in the previous action, inadmissable. Mr. Inder said he considered his questions were justified. "I wish to show that the activities of the company were a breach of New Zealand law," counsel added. "Of course, in that case, this Court could not support an action for the iecovery of moneys alleged to be pavable." Counsel then addressed a series of questions to witness regarding tho operations of the corapany, objections by Mr. Goldstine being upheld by the magistrate. Giving judgment for the plaintiff company, the magistrate said the matter had to be decided in the light of the memorandum of association, and nothing relating to the actions of the directors following the incorporation of the company was admissible as evidence. "All that I have to be satisfied about is that the calls on shares were made properly in accordance with the articles of association," the magistrate added. Judgment for the plaintiff company was also given in Similar actions for corresponding amounts! brought against Mary Bull and Percival James Brown.