SHARES OR CASH.

Star (Christchurch), Issue 17029, 1 May 1923, Page 8

SHARES OR CASH.

AN IMPORTANT JUDGMENT. An important judgment of interest to dairy farmers has been delivered b; Mr Wyvern Wilson. S.M.. i„ the 'aee iu which R. Hemingway claimed £i i from the Kaikouru Co-operative Dairy Companv. plaintiff having de dined to accept from the company shares in lieu of this money. Some time ago the company put in a butter plant and it wn* agreed that the money should bo raised by the issue of further shares, suppliers to take one “hare for each two cows milked. Plaintiff, who is a shareholder in the defendant comp, nv and a supplier to t’nc factory, declined to take shares in lieu of cash tor butter fat sold. In the course of his judgment the Magistrate said that the legal position was well expressed bv At:- Justice Salmond in Donald v. Xormanbv Cooperative Dairy Company. Ltd. (1922, G.L.K.. p. 498): ** A company cannot n-sue or allot shares except to a person who has avyeed with the company to accept them. Shares have their sole origin in a contract between the company and the person to whom they are originally issued." In the present ciiM- plaintiff had never contracted to take up more shares and he should have the money held by the company paid to him as the balance of the price of butter fat sold. Judgment vhb accordingly entered for the plaintiff for £l4 and cost*.