OVERDUE MINING CALLS.

Otago Witness, Issue 2950, 28 September 1910, Page 18

OVERDUE MINING CALLS.

LIABILITY ON FORFEITED SHARES. AUCKLAND, September 20. Me Justice Edwards to-dav allowed the appeal in the case of the Kapanja Gold Mining Company against the decision of Mr Kettle. S.M.. in the claim of the company against Margaret A. Bridson for £l4 3s 4d, calls on forfeited shares. The call was made on April 8. Respondent had "'failed to pay on April 22. and on June 16 the shares were offered for pale by auction. There being no bid, they were placed in the register in the company's name, and subsequently reissued. The case was dismissed by Mr Kettle. S.M., on the ground that section 352 of " The Companies Act. 1908," had not been complied with, as proceedings had not. been begun within 14 days after the call became payable. His Honor reviewed the law at some length. He said that under section 357 there was no limit of time within which an action must be brought. The question to be determined was whether the. ca c e came within paragraph 2 of section 357. and this had been determined by Mr Justice Williams in the Liquidator of the Victoria Company v. Kerr. If he were unhampered by this authority he would have thought that paragraph 2 of section 357 was governed bv paragraph 1 of the same section, and that no part of that section would apply unless there had. Hbeen a sale of shares. He should ha.ve thought the sale and forfeiture of the shares had the ordinary result of a foreclosure, and that while it extinguished the ri<dit of the shareholder to the shares and to any claim in respect of the shares, it also extinguished the debt which was the basis of the foreclosure. The contrary, however, was decided by Mr Justice Williams. Though he was not bound by that decision, as a decision, he (Mr Justice Edwards) was bound by it by subsequent legislation. Had the attention of the S.M. been called to the dedsion of Mr Just-ire Williams and to the history of the subsequent legLs.'ation, he would no doubt have come to the conclusion to which he was himself drivenThe appeal would be upheld.