FORMATION OF COMPANY.

Otago Witness, Issue 3775, 20 July 1926, Page 67

FORMATION OF COMPANY.

WELLINGTON, July 15. Mr Justice Ostler was engaged in tha Supreme Court to-day hearing a summons under the Companies Act to determine questions arising out of the winding up of a business. The parties were John Herbert Turner (liquidator of Messrs K. Alexander and Co.) plaintiff, and Joseph Bishard Akel, merchant. The position as placed before the court was that Akel was the owner of large interests in Messrs Alexander and Co., a partnership business. While he was on a visit to Europe the business was converted into a company. It was thought Akel would confirm the formation of the company on his return. The court was asked to pronounce on Akel’s claim that the company did not acquire any interest in the partnership business, that the assets of the business still belonged to the partnership, and also the claim of Akel to prove as a creditor of the company, and whether the claim was a preferential claim in liquidation. It was claimed on behalf of Akel that the company had acquired no interest in the business as the company had made a contract to purchase, with only and not all the partners.