COLONIAL BANK LIQUIDATION.

Otago Witness, Issue 2258, 10 June 1897, Page 38

COLONIAL BANK LIQUIDATION.

THE HON. GEORGE M'LEAN TO BE EXAMINED. At tha sitting in Chambers of the Supreme Court on the 4th insfc., a motion came before his Honor Mr Justice Williams for the examination of the Hon. George M'Lean, the late chairman of directors of the Colonial Bank. Mr B. C. Haggitt appeared in support of the motion for the liquidators of the Colonial Bank, and Mr Allan Holmes appeared for the Hon. George M'Lean. On the motion being called on, Mr Allan Holmes said that he wished to say a word or two as representing Mr M'Lsan. In the winding up of companies by the court euch winding up was only practicable, he took it, on the assumption that the liquidators could and for the most part did obtain voluntarily such information as they might require for the performance of their duties, and the intervention of the court was only asked when the liquidators were unable to obtain such information in that way. If in every case where information was wanted, a formal examination were held, tho court would be loaded with work that was perfectly superfluous and j unnecessary. As a general rule the liquidators simply asked for and obtained what information they required from the peraonß who had charge of the company's business prior to the liquidation, the couro being only resorted to when the_ liquidators were unable to obtain the information they rpquired in that way. In ordinary practice, therefore, he believed that the liquidators constantly consulted with tb.9 former directors of the company in liquidation as a matter of course, and obtaiued from them, — also as a matter of course — what information they wanted: It might, therefore, have been expected that if in the pre'ent ease the liquidators required any information from the directors in general-, and from the president in particular, they would have asked for ifc and not applied to the court unless the information they wanted was refused or the answers to the questions put appeared to be unsatisfactory. In this case Mr M'Lean had intimated to two of the liquidators on several occasions hii willingness to give the liquidators every information and to assist them in every way, and he could have been seen by tho liquidators without the slightest difficulty at any time up to the presentation of their report. More than that, Mr M 'Lean had asked, and pressed it very strongly, to be allowed to furnish an explanation to hi sent out along wifch the report. That application was, however, declined. The result was that Mr M'Lean was placed in the invidious p' s'tion that it seemed to be necessary to invoke the assistance of the court in order to obtain information which the liquidators required, while the fact was quite the contrary. Further, the liquidators' report had been sent in, and gone forth to the world with all the force of a judicial finding, before making the application which was now before the court or seeking any explanation from the directors. He (Mr Holmes) did not; attribute to the liquidators any intentional unfairness in this. Their report in most respects professed to be a bare statements of facts, but it might be incomplete, and might be misapprehended, and thus give rise to erroneous conclusions. He did nob propose to deal further with this aspect of the matter excepting to repeat that Mr M'Lean had always been anxious to meet the liquidators and to assist them in every way in their work. When, however, this applii cation came up he (Mr Holmes) apprehended ! that the court might of its own motion consider whether the liquidators had exhausted all the means in their power to obtain the information required. It was not desired to oppose the application — that would be inexpedient ;— • but he thought that under the circumstances Mr M'Lsan was entitled to ask for some terms, and as a matter of fairness he asked that the order for examination should ba subject to these conditions : first of all, that the points on which information was sought should be indi- | cated ; secondly, that Mr M'Lean should have i | access to all books and documents beforehand j which were under the control of the liquidators ; and thirdly, that he should have an opportunity ! of being examined first by his own counsel, and then that the examination by tha liquidators should follow. As to the first of these terms he imagined there wonld be no difficulty whatever. Would Mr Haggitt say whether he was justified in that assumption ? Mr Haggitt : Yes, generally ; but of courss we could not give you a list of questions. Mr Holmes : I only ask for heading!, nob for the actual questions. As to the second point, with respect to access to books and documents, I anticipate there will be no opposition. Mr Haggitt : That is agreed. His Honor remarked thai; the request was a fair one. Mr Holmes said that as to tho third point he would submit that the procedure he suggested would tend to shorten the proceedings immensely. Mr M'Leau was prepared to give what he believed would be found to be a very simple, straightforward, and direct answer on every point regarding which information was sought, and the course , proposed would enable ttie faebs to be brought before the court much more conveniently and concisely than by any other method. His Honor remarked that on this subject there might be something to be said on behalf of the liquidators. Mr Haggitt : Ido not gay that I agree to the course proposed. His Honor observed that if the plan proposed were followed it might, of course, be suggested on Mr M 'Lean's part that as his statement would come first there would be something for counsel to cross-examine on. Mr Holmes : We do not seek to stand in the way of the liquidators' examination. Let that be in full, if they want it. I suggest that by | commencing with facts which have been overlooked and showing the connection of facts which have been misapprehended the effect will be to materially shorten and elucidate the whole proceedings. His Honor said that if the liquidators objected he should not like to make the order in opposition to them, unless satisfied that the course proposed was the more convenient. It might be the more convenient or it might not. Mr Holmes : We do not object to an examination by the liquidators in fall, bat we want to pave the way for such examination by an introductory examination by counsel. That will meet all they want. Mr Haggitt suggested as a way out of the difficulty that Mr M'Lean might put in a statement. His Honor : Yes, suoh a statement might be put in. Mr Holmes : Yes, that might cover most of the ground. Mr Haggitts He can ask to do that when the examination comes on, and probably it would not be objected to. But there is no need to make that a° term of the order. His Honor i I think that would be better, probably. Mr Holmes : Very well ; we are quite prepared to accept that suggestion. Mr Haggitt : As to the other suggestion ?

Mr Holmes said that it might be impossibla to answer at ail unless Mr M'Lean had access to the books. His Honor said it was most important thab snch access should be had, and id was fair, also, that he should have an opportunity of inspection. It waß agreed by counsel that the foregoing arrangement should be given effect to, butj that no terms need be embodied in tha order, and His Honor made an order in term* of the summons, fixing the examination for Wednesday, the 30th June, at 11 a.m.

The Bank of Australasia shipped nine boxes of gold by the Wakatipu for Melbourne yesterday. A Coromantlel resident (Mr H. P. Hornibrooke) unearthed in his garden last week a nugget worth £10. At a well-attended meeting held afc Christ? church on Friday night to protest against the inefficient administration of the liquor laws in the King Country, the following resolution was passed :— •• Thai this meetiug learns with sorrow of the terrible evils inflicted on the Natives of the King Country by the illicib sale oE liquor, and enters its protest against the apathetic administration by the Government of the law prohibiting the sale of intoxicants in the country referred to, and demands , that the Minister for Defence take such step 3 immediately as shall remove this reproach from the colony." The employees of Messrs Bing, Harris, and Co. met ou Friday evening for the purpose of presenting Mr J. J. M'Laren, l»te goldflelds representative of the firm, with soms} token o£ their esteem on the occasion of his leaving the employ to sbarfc business on his own account. Mr 1\ H. King, in making the presentation, which consisted of a travelling case, set or gold studs, and a pipe, referred to the recipient's long and successful career with the firm, and expressed the heartfelt wishes of his fellow employees for hi» success in his new sphere. Mr J. M*Lar.eu suitably replied, expressing his appreciation of the gifts tendered him and his regret at severing his counection with the firm.