DAMAGES AWARDED

Taranaki Daily News, 16 April 1935, Page 5

DAMAGES AWARDED

TOBACCO COMPANY PROMOTION.

CORRUPT PRACTICE OF MANAGER.

By Telegraph—Press Association.

Auckland, Last Night.

The decision of Mr. Justice Herdman in an action for damages brought by the liquidators for the Premier Tobacco Company (N.Z.), Limited, against William Samuel Russell, managing director of the company, on the grounds of alleged corrupt practice in the promotion of the company was given to-day. The plaintiffs claimed a total of £33,820, made up of 15,000 £1 shares received by the defendant, and 15,000 shares which he allowed to go to the Eeronne syndicate, though it had never carried out its part of the contract, and £3820 cash received by the defendant. His Honour found that Russell had received profit which was not revealed in the prospectus and that he was guilty of a breach of trust in connection with the allotment on shares. Fussell was ordered to pay to the liquidator £3BOO, less expenses of £7OO. He was also ordered to pay damages for 15,000 shares which he had allotted to himself and for 15,000 shares which in breach of trust he had allotted to the Eeronne syndicate, the measure of these damages being the market price of the shares at the date of allotment.