THE PROFITS OF A BUSINESS CONVERTED.

Colonist, Volume XLVIII, Issue 11675, 10 July 1906, Page 4

THE PROFITS OF A BUSINESS CONVERTED.

Wellington, July 9. The case of Cowlishaw and others v. the "Press" Company, of Christchurch, was resumed to-day at the Appeal Court. Mr Bell, for the plaintiffs, quoted authorities in support of the contention that the profitß made by the defendants from 1892 to 1898 should have been expended in paying dividends to ordinary shareholders instead of fceiog put into the business and converted into capital. Counsel quoted from the balance sheets to show that between 1891 and 1904 the aseete cf the Company had considerably increased, and the increase built up out of the annual profitß, after paying a dm dend of 8 per cent to preference shareholders. The plaintiffs wanted an acount of the profits taken, and declaration of the Court that the profits which should have been paid to ordinary shareholders, but which had been used to build up the business of the Company, belonged to the ordinary shareholders. Mr Stringer followed, addressing 4he Court on the question of the duties

lof directors in dealing with the c j profits of a company.