CLAIM FOR £375 SALARY

Taranaki Daily News, 24 September 1928, Page 11

CLAIM FOR £375 SALARY

COMPANY MANAGING DIRECTOR. JUDGE UNABLE TO MAKE ORDER. The Supreme Court case in which George William Gane, farmer, of Normanby, and late managing director of Zeala Products Ltd. (now in voluntary liquidation), claimed £375 salary, £l7B travelling expenses and £2O 13s disbursmente from the company came to a conclusion at New Plymouth on Saturday morning. Gane was allowed the travelling expenses and disbursements he claimed, but Mr. Justice Ostler said he could not grant him the sum claimed as salary. Evidence was given to th? effect that Gane wae the only practical man on the directorate, and was appointed managing director at a salary of £590 per annum. The company had had money, but had never been able to pay its way, and Gane had not drawn any salary dr expenses. Ultimately, as the process upon manufacturing cheese did not produce the anticipated results, the company went into liquidation. The subscribed capital, involving a sum of £’20,000, was drawn chiefly from Taranaki, and a number of people were naturally feeling, very, sore about the loss of their money. In giving judgment, His Honour said it was clear that the directors appointed Gane managing director, and intended him to act as such, but unfortunately they had not the power, under the articles of association, to make such au appointment, which was ultra vires. He must therefore rule that Gane was not entitled to tho payment of salary. The claim for travelling expenses and disbursements was not contested, and an order was made accordingly. The liquidator was granted £7 7s costs and disbursements, payable out of the assets of the company.