COMPANY LAW

Stratford Evening Post, Issue 97, 6 December 1928, Page 6

COMPANY LAW

PRINCIPE E TIOL A TED. BY RURAL CREDIT LAW. The Chamber of Commerce last night Considered a letter from Mr A. Coleman, who wrote,' drawing attention to a provision of th e Rural Intermediate Credit Act by which a company was empowered, notwithstanding anything to the contrary in it's memorandum or Articles, of Association, to guarantee the repayment of a loan or the payment o>. interest on any loan under the Act. The writer contended that the provision struck a blow at the fundamental principles of company law. Besides being illogical and unscientific, the provision was unjust old ‘interfered with the 1 hitherto luvdoubted rights of company shareholders and Creditors. Mr Power said that he felt sure that a remit 1 to the Dominion conference would be sent forward. by the Taranaki Society of Accountants. A bad feature was that the provision was brought 1 in in a new measure. If it had been attempted to alter the Company. Law in his direction it would not have been allowed. Mr Thomson sard there had been other shocking cases of the same sort of. thing. It was decided to endorse Mr Coleman’s protest and to forward a copy cf'his letter tb > lie Associated Cham hers of Commerce.