A PECULIAR MINING LAW.

Otago Witness, Issue 2436, 21 November 1900, Page 21

A PECULIAR MINING LAW.

A Christohurch citizen (says the Press) has had an unpleasant experience of the mining laws of Tasmania. Having invested in certain shares, which were fully paid-up, he was naturally astonished when he afterwards learned that the shares had been written ciown, and that he was liable for a call in respect of the amount of the difference between the paid-up value and that to which they had been written down. Believing that there must be some mistake, he consulted a firm of solicitors in Hobart, who have informed him, in reply, that the action of thp company in question, the Colebrook Prospecting Association, is perfectly legal according to the law of Tasmania. "In this colony," they explain, " a mining company — whethei registered as a no liability company or not — can at any time, with the sanction given at an extraordinary meeting of a majority in number and value of the shareholders in such company, in person or by proxy, increase its capital by increasing the amount payable in respect to each share, or by the issue of new shares, or by both of these means, every such increase to be in the case of new shares of such amount and to be divided into shares of such respective amounts as such majority shall direct." They point out that if further calls are made and remain unpaid, the shares become liable to forfeiture, just as they would if contributing shares have been liable for non-payment of calls before the original amount of capital was fully paid-up. They agree that the position is an, unfortunate one, but the shareholder has no temedy. The letter concludes — " There is, as you have justly pointed out, nothing to prevent the capital being increased again and again, and shares which were originally paid-up being thus made responsible for calls equally with other shares."