IN LIQUIDATION.

New Zealand Times, Volume XXXVI, Issue 8192, 6 August 1912, Page 2

IN LIQUIDATION.

SHAREHOLDER'S LIABILITY. CASE OP KING GOLD MINING • COMPANY. Decision was given by the Court of Appeal yesterday in tho case In which the Kang Gold Mining Company (in liquidation) appealed against the decision ot Mr Justice Cooper, removing from the list of contributories the name of Biohard Cock. It had been proved that the company woe a mining company registered under the Companies Act, 1908, Cock applied for fifty shares in April. 1910. and paid one shilling per share upon the application. The snares were allotted to him, but ho paid no allotment money, and had paid nothing since. Fifteen calls, each of Is per share, had been made since Cock made has application. Notice of all these calls was given to Cock, but no steps were taken by the company to sue for or recover any of the calls or the allotment mono” • nor were any of the shares held by the applicant (Cock) sold or offered for sale by the company under the provisions of section 356 of the Act. The company was now being liquidated under a voluntary liquidation, and the liquidators had placed Cock on the list of contributors primarily liable to contribute, calling upon him for 5s per share. The application made to the court was to remove Cock’s najre from the list on the ground that under Part XII. of the Companies Act, his shares had been forfeited, at ; the expiry of twenty-one days from the day on which the first call became payable, by non-payment of the call, and that therefore ho had ceased from that date (May sth, 1910) to bo a member of the company. As more than twelve months had elapsed from that date to the date of the voluntary liquidation. It was contended Cock was not liable to contribute to the assets of the company, there being no evidence that the existing members of the company were unable to satisfy all the contributions required to bo made by thorn in pursuance of tho Act. In giving judgment Mr Justice Cooper said: "As tho liquidators have not adduced any evidence upon which the court can hold that tho existing members of the company are unable to satisfy the contributions required to be made by them In pursuance of tho Act, the application must bo granted and th© applicant's name removed from the list of contributories." The appeal from this decision was heard by their Honors Sir Robert Stout. Mr Justice Edwards, Mr Justice Chapman and Mr Justice Sim. Tholr Honors upheld Mr Justice Coopers decision, agreeing that the appeal must he dismissed. _ At tho hearing Mr O N. Beero appeared for tho appellant company and Mr C. H. Treadwell for Cock.