LIABILITY FOR SHARES
CLAIM SUCCEEDS INTERESTING POINT (IVv Press Association.) MJXKDIN, this day. An interesting point, making it dear that a shareholder who claims he has- been induced to buy shares by misrepresentation cannot deny liability for the shares until he has repudiated the contract and had his name removed from the share register, was revealed in the Magistrate's Court when Miimaku Forests, Auckland, successfully proceeded against J. Steedman, Dunedin, an a claim for £G as the balance owing on shares. Misrepresentation, it was .alleged, had been made by the company's Otago salesman.
Counsel stated that this was a test case, as 1- similar actions were involved.
The magistrate, in entering judgment for the company, said that the legal position was clear and before a shareholder could institute such proceedings he must repudiate the contract, removing his name from the register. The position might seem harsh, but it was necessary for the protection of the public.
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Bibliographic details
Poverty Bay Herald, Volume LXIII, Issue 18974, 26 March 1936, Page 15
Word Count
156LIABILITY FOR SHARES Poverty Bay Herald, Volume LXIII, Issue 18974, 26 March 1936, Page 15
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