APPLICATION FOR SHARES
FAILURE TO ISSUE PROSPECTUS NO SUGGESTION OF FRAUD. (Per United Press Association) CHRISTCHURCH, June 26. A charge under the Companies Act, 1933, said to be the first of its kind in New Zealand, was heard in the Magistrate's Court to-day, wlrnn A. Perry and Co.. Christchurch brokers, pleaded guilty to issuing an application for shares without a prospectus. The defendants were fined £2 and costs by the magistrate, Mr E. C. Lcvvey, who stated that he would treat the case as a warning. Counsel for the Assistant Registrar of Companies said that the maximum penalty was £SOO. The whole purpose of the regulation was to prevent people being defrauded. In this case there was no suggestion of fraud, and it was the first prosecution under the Act in New Zealand. . Counsel for the company said that his clients had overlooked the subsection.
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Bibliographic details
Otago Daily Times, Issue 22608, 27 June 1935, Page 10
Word Count
145APPLICATION FOR SHARES Otago Daily Times, Issue 22608, 27 June 1935, Page 10
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