THE DAIRY INDUSTRY.

Taranaki Daily News, 26 September 1924, Page 5

THE DAIRY INDUSTRY.

SUPPLIERS TO FACTORIES. DUTY OF SHAiB EHOT DEBS IMPORTANT QUESTIONS RAISED. (By Wire—Parliamentary Reporter.F Wellington, Lut Ni*hi The Dairy Industry Amendment Bill wa» circulated in the Qouw to-day. It hae recently been h«H by the Supreme Court iu the eaae of McDonald v. tfee Normality Ge-operative Dairy Faotay Company, United, that a co-Opw*t»». dairy company hu no authority, apart from an express contract witu in<U»i dual shareholder, to require it. mMHbere, by virtu, of tbe provtaton. In ita article, ot a.uxgiaMon, *» additional aharea in the company, Md by reason of thi. d«oimon doubta hade arisen ae to the validity of certain pa«. allotments of ahaMc. One of the objeeta of tho Bill ia M validate the allotment of euch ahar.a with two exceptions, namely (1) Tfce Bill does not interfere with the parttaular allotment of sharee which was A, subject matter of the case above deferred to; (2) the Bill does not validate addotmente which were obj.ated to In writing by shareholders, if th. Aaretiolden, on lodging thdir ceased to supply milk to the comply. It hae recently been further decided in th. case Shalfoon v. tb« Cheddar Valley Co-operative Dairy TSimpsßsy that a co-operative dairy company *»- Hot, by means of ita artielas of adpo* cietion, require iu shareholdm to *pply milk, cream or other dairy produce to the company, but that the supply of such produce must ba Hie eubjtot matter of special agreements. It is provided by the Bill that existing Articles of association shall be deemed to be valid and effective, notwithstanding the judicial determination aforesaid, abd, further, that co-operative dairy cOtnpanies may hereafter effectively provide by their articles for the supply of milk and other produo. by shareholders.

Reporter.?