A CO-OPERATIVE COMPANY.

Poverty Bay Herald, Volume XXXV, Issue 11371, 2 September 1908, Page 3

A CO-OPERATIVE COMPANY.

CLAIM AGAINST FARMER.

(i'er Press Association.) AUUiiJbAxN.O, las night. Mr Dyer, b.AL, gave juuginent vi tlie case m which tue Aiataitana cooperative Dairy -Co, -Ltd^ sougut, to recover *iou lis Jjd trom J. Wotuerspoon, ox vvanga: lipo, f or losa "sustwmtd uy plain Uhii uy reason vi tne deienaanii iiwliiig to suppi/ the pt-esicil bed amount, oi bucter-lat/ ai terma oi tne ariicles* and amended aiticles. oi association o£ tne plamtitt company. Tne plaintilt' company is a iimited liability company, diuy incorporated nnder tlie Companies 'Act, IbBZ, witu a capitaLct £oOUO, divided into oow) snares ol ifl eacU. frior to June 1, liKW, <teiendant applied for and was allotted ia) shares m tlie .company, and was dulyl entered, upon the cuiupariy's rtgister. Mr j Dyer aaiu tiiat by tue original >i-ticks each sliarehoider was to hold && many shares as he uulked cows, saeh siuues to be paid by the payment ol 'Zs 6d per share on application aud the balance Dy the deduction ot gd per Id. of butter-fat supplied by him to tb© company until the amouht ol his shares were luliy paid up. %On December 19th, 1905, tne defendant was allotted 20 new shares under tlie amended article « (c), which provide ed that as soon as the shares uf any shareholder should be paid up, as iprovided by tlie original article 8, it should be lawful for the directorSi to allot to him more shares m the company not less m number than those originally allotted to him to be paid for by the deduction of |d per lb of butter-fat, and the sliarehoider should continue to take a small number of new shares from time to time as the? shares held by him were paid up, and should pay for tlie same as lastly provided until the liability of the company was paid up. The present action was laid on. articles 8 A. and 8 B to recover alleged loss through defendant failing to supply the required quantity of butter-fat. On July 1, 1907, the directors declared <c dividend of £5 per cent on all fully paid up shares, and m September, 1907, the defendant was paid a dividend of £1 13s. Tlie defendant, while admitting that he failed to, supply as much milk as he should have supplied 'Under the amended articles, contended that thos© amended articles were ultra vires and therefore invalid. In the course of reviewing the obligations of the Association and its limitations, his Worship went on to express the opinion that the amended articles had increased the liabilities of the shareholders . beyond the liability limited m the memorandum of association, and that they were therefore ultra vires of the memorandum! and void. Judgment was accordingly given for the defendant with costs.