SALE OF PROPERTY.

Otago Daily Times, Issue 19966, 7 December 1926, Page 10

SALE OF PROPERTY.

DISPOSAL OF ASSETS. TRUSTEES’ OBJECTIONS UPHELD (Special to Dails Times.) AUCKLAND, December 6. An action which involved a point of law that was said to be without precedent in New Zealand was the subject of a reserved judgment by Mr Justice Ostler in the Supreme Court to-day. The case was a motion by the liquidator of the Victoria Street Properties (Ltd.), taken under section 226 of the Companies Act, 1908, for the determination of certain questions arising out of the voluntary liquidation of the company. The company acquired a lease of land which is situated on the corner ot Victoria, High, and Kitchener streets from the trustees of the Outhwnite estates for 100 years at a rental of £2OOO per year for the first 40 years and £3OOO for the remainder of the term The company subsequently sold the lease at a profit to the Unique Properties (Ltd.), the sale being approved by the trustees and the Victoria Street Properties (Ltd.) went into voluntary liquidation. When the liquidator found himself in a position to return the capital to the shareholders and divide the profits, ha was pressed by the shareholders on the one hand and by the trustees on the other, and the trustees intimated that they would hold the Victoria Street Properties (Ltd.) responsible for the performance of certain conditions of the lease, in addition to the payment of the lent. In his judgment. Mr Justice Ostler made an order requiring the liquidator to retain all the assets of the Victoria Street Properties (Ltd.), and keep the company functioning until a further order of th® court has been obtained.