SUPREME COURT

Southland Times, Issue 21089, 22 May 1930, Page 7

SUPREME COURT

LIST OF CONTRIBUTORIES. VARIATION SOUGHT. In the Supreme Court yesterday, before Mr Justice Kennedy, a summons was brought by Arthur Hume Mackrell, of Invercargill, sharebroker, against John Bertram Reid, as liquidator of the Southland Sea Products Limited, asking for an order that the list of contributories of the company be varied by excluding the name of the applicant therefrom upon the grounds that he was not a shareholder of the company. Mr W. A. Stout appeared on behalf of the applicant, while Mr H. J. Macalister represented’the liquidator.. The facts as explained to the Court were that Henry John Rorlerique had entered into an agreement for services with the company and had also accepted a number of partly paid shares in the company as part of the purchase money for the sale of his ketch and other assets. In 1928 disputes arose between Roderique and the company, and an agreement was entered into cancelling the agreement for services. In pursuance of this agreement Roderique transferred to Mackrell 1000 shares then held by him paid up to £625. Mackrell agreed to hold these shares in trust for the company. The transfer was not, however, registered in the share register of the company and, in September, 1929, the company went into liquidation. The liquidator then registered the transfer and called upon Mackrell to pay the balance of the uncalled capital. Mr Stout, who supported the summons, urged that Mackreli's name should be removed on the grounds that it was not intended that he should be under any personal liability, and that the transaction was in the nature of a compromise and did not involve the payment out by the company of any of its capital. Mr Macalister, on behalf of the liquidator, relied upon a number of English cases to show that the transaction involved a reduction of capital and was invalid, and that Mackrell was personally liable, notwithstanding the fact that he purported to hold the shares as trustee for the company. His Honour reserved his decision.