A DEFUNCT COMPANY

Otago Daily Times, Issue 22063, 20 September 1933, Page 4

A DEFUNCT COMPANY

ACTION BY BONDHOLDERS SUPREME COURT DECISION. (Pee United Press Association.) AUCKLAND, September 19. Two bondholders in Forestal Timber Company, Ltd., claimed judgment in the Supreme Court for £202 10s against the company, and also asked the court to declare that the company’s interest in the fund held by the public trustee had been forfeited. They further asked for judgment for the amount of their claim against the public The company filed no defence and plaintiff’s counsel said it had been practically defunct since 1930. Evidence was given by the plaintiffs, William Edward Peers and Samuel William Peers, that they purchased _ bonds from the company’s representative at Singapore. The secretary of the company, R. G. Milligan, said that in 1925 the proposed bond issue was to be 350,000 and land was to be leased at Putaruru. No bonds were sold in New Zealand; they were sold principally in the Malay States. The bonds disposed of totalled 1411. The annual report of 1930 indicated that the 1040 acres of the area planted had been a complete failure and the company therefore bad to abandon the project. Its capital was exhausted. By 1933 the accumulated losses were £IO,OOO and the rent owing to the Lands Department was £2714. The position to-day was that the company did not own an acre of land or a single tree and had no money. There was no possibility of its carrying out its obligations. The directors had all resigned. Counsel for the public trustee said he was quite neutral and merely awaited a decision as to how the trust fund should be dealt with. Mr Justice Herdmnn made an order that the fund held by the public trustee is to be held in trust for the bondholders.