DAIRY COMPANIES.

Otago Witness, Issue 3889, 25 September 1928, Page 13

DAIRY COMPANIES.

ALLOTMENT OF SHARES] WOODVILLE. September 18. A written judgment by Mr J. Miller, fci.Al., of interest to dairy companies concerning the allotment of shares to a supplier by a company on the basis of butterfat supplied was read in the Magistrate’s Court this morning. The directors of the Woodville Dairy Company, in accordance with its articles of association, allotted to W. Brotherstone, a -hareholder, a further 45 shares to bring his 9}* ,, up 170 > as he had supplied 17,0001 b of butter-fat, the basis of allotment being one share for every 1001 b. The company deducted $d per lb of but-ter-fat as payment, Lu. the shareholder objected to the allotment without application, and he took action to recover the amount deducted. Judgment was given for the defendant company with costs, the magistrate holding that a shareholder was bound by articles 5 and 6, for when he became a shareholder he accepted the conditions that each supplier should hold two shares for every cow he should own 2001 b of butter-fat to represent each cow, and that the directors might allot additional shares without application from shareholders.