CLAIMS AGAINST COMPANY

Southland Times, Issue 23180, 22 April 1937, Page 5

CLAIMS AGAINST COMPANY

SHARE TRANSFERS EVIDENCE FOR THE PLAINTIFF (United Press Association) CHRISTCHURCH, April 21. The first of a series of 18 claims against the Australasian Investment Corporation, Ltd., a Christchurch company, was brought in the Supreme Court today before Mr Justice Kennedy, the claims being based on share transfers involving £14,420. This is the second of such a series of claims within five months. The claims arise from the transfer of shares in the Investment Executive Trust Company of New Zealand, Ltd., one of the J. W. S. McArthur companies—and concern shares of the nominal value of £14,420 transferred to the Australasian Investment Corporation. The plaintiff in the first claim is George Herbert Elliott, a retired art master of Palmerston North, who claimed the return of shares of the nominal value of £6OO, which he had transferred from the Investment Executive Trust to the Australasian Investment Corporation. He also claimed £240 in dividends on those shares received by defendant company from the Public Trustee and £6O paid in cash at the time of transfer. Plaintiff was represented by Mr R. A. Young, who has with him Mr K. J. MeMenamin, and the defendant company by Mr H. F. O’Leary, K.C., who has with him Mr R. E. Tripe. In his statement of claim plaintiff set out that he was originally the holder of debentures of the nominal value of £6OO in the Investment Executive Trust Company of New Zealand, Ltd., the assets of which had been vested by Act of Parliament in the Public Trustee. In May, 1936 plaintiff agreed to transfer to the defendant company his debentures, together with £6O in cash for the issue to him of £6OO worth of shares in the Australasian Investment Corporation. This transfer, the statement continued, had been made on the representations of Osmond Arthur Bridgewater, managing director of the corporation. In persuading him to transfer Bridgewater had said: (1) That no commission would be charged for transfer. (2) That he (Bridgewater) had himself possessed a large holding in the Investment Executive Trust and had transferred to defendant company and (3) That neither J. W. S. McArthur nor any ’ person or firm or company associated with him was in any way connected or associated with the Australasian Investment Corporation. Since making the transfer on those assurances plaintiff said he had discovered: (1) That commission had been charged of at least 5 per cent by Bridgewater or the company controlled by him. (2) That at the time of transfer of plaintiff’s shares Bridgewater was the holder .of only one share in defendant company and had not at any time before been the holder of other shares and (3) That J. W. S. McArthur and certain companies and committees under his control had been actively-associated with Bridgewater and defendant company. The evidence for plaintiff was concluded today and Mr O’Leary’s opening address was interrupted? by an adjournment until tomorrow.