A COMPANY’S AFFAIRS

Poverty Bay Herald, Volume LV, Issue 17231, 10 April 1930, Page 8

A COMPANY’S AFFAIRS

WINDING-UP PETITION SHAREHOLDER’S ALLEGATIONS 1 (P«*r Press Association.) WELLINGTON, last night. 1 A petition for"the compulsory winding up of the National Portland Cement .Cp., : Ltd., came before the Chief Justice in. the Supreme Court to-day. Mr. G. G. Watson, with him Mr. G. E. Arms, 1 appeared for the petitioner, James Cos--tello, of Westport, and Mr. W. 11-1 Cunningham for the company. Betitioner held 200 contributory; shares, said Mr. Watson, and lie also; claimed to represent 4185 other contributory shares, ',l'he company was incorporated in 1924 with a nominal capita,! of £300,0C0. which was, subsequently, increased to £350,000. Actually .27,950’ contributory shares bad .been issued, and there were also 25,000 fullypaid shaves issued. It would lie seen from the Figures before .the court that, in the 5.j years which liacl elapsed since tjie company was incorporated less than one-twelfflGof the contributory .shares, had heen issued, and the total amount received from the shareholders o.n account of calls to date was £9IBB. I.lis Hp.UP.r observed that the three points which struck’ him wore • .(,1) jin' delay in' co.awiepcipg operations ; (2) that fiYfify ,6d .received from the sbnyehqlder'P had -.been spent and there was nothing to show to.r the expenditure; and (3) the company was a cement making comptuiy and .wanted to .make something else. Counsel said it appeared that to get in £9OOO there had' been spent roughly £BOOO. Even if credit were given In the company for ,heavy preliminary expenses it' seemed that, the .expenditure bad .beep somewhat staggering in view of the comparatively small return. MONEY FOR INVESTMENT. Mr. Cunningham said that there was no suggestion of misconduct in the operutkius of the company. The result, was much to be regretted, but, had the capital come to hand, the expenditure in relation to capita 1 would have been shown on a much better footing. Unfortunately,' it cost, as much lo try .to sell shares as .actually to sell Of the moqey spent to ,dhte, £3048 represented money spent- in acquiring property. Owing to the financial depression, the company had' not been able to get, capital to start its operations. Jiis Honor : Are you justified in saying that ? For quite a long time, there was any quantity of money available for investment. J urn not speaking of the last eight or 10 months, but, prior f.» that, money was lying idle and could not be invested. It may be, of course, that people thought the company had no chance .against well established concerns which were strongly .entrenched. Counsel then dealt with the question of whether it could bo said that the substratum of the company’s undertaking had gone as a result of the proposal to go in for hydrated lime. He pointed out that the acquisition of suitable property, as stated in the primary objective of the company, had been carried out. Tlie attitude of the directors was that, after receiving notice of petition, they had suspended operations and had agreed to put the position frankly before the court.

His Honor said that it was admitted very properly hy Mr. Watson that the directors had acted in a fair and frank planner. Decision was reserved.