PREFERENCE SHARES.

Waikato Times, Volume XXVI, Issue 2137, 20 March 1886, Page 2

PREFERENCE SHARES.

An important decision was lately given in the Court of Appeal in London («ays the St. James' Budget) on the power of a limited liability company to issue preference shares. Aa regards purchasers of ordinary shares, it is a matter of prime importance to them to know how far their dividend prospects can be affected by the sudden issue of preference shares ranking, for dividend purposes, in pnoiity to their own. If the memorandum of association is silent upon the subject of the terms of the original contract under which the company is formed, then there is an implied condition that all holders of shares are entitled j to rank equally as regards dividends without any preference or priority between theniselves. Such is the fundamental principle. On the other hand, the articles of association are usually included in a contemporaneous document ; and if it appears clearly on this document that the meaning of this original contract was otherwise, then the implication of equality is rebutted. As a rule the question in such cases resolves itself into the inquiry, does the memorandum or the articles of association empower the ibsue of shares to which a preferential dividend is attached? The shareholder*, will in moat cases have topass the necessary resolutions, but the decision of the Court of Appeal in the South Durham Brewery Company's case, following as it does a similar decision of the late Master of the Rolls (Sir George Jessel), shows how important it is for the subscribers or purchasers of ordinary shares in limited liability companies to give special attention to the point.

Dr Holmes is only a few months younger than Tennyson, and Whittier is older than Browning. A scientific man says that he never saw a bald Indian. The Indians from time immemorial have understood how to manage their wives. Mr Mapleson was a witness the other day in a suit which he instituted to recover the duty paid on rome armor and costumes he had brought from England for use on the opera stage. "What is your business?" he was asked. "I am an irnpressario, " replied the Colonel with lofty dignity. "Well, now tell us, Mr Mapleson," said the lawyer, " what is an impressario!" An "irnpresaaro," said Mapleson, unbending somewhat and revealing the suggestion of a smile, •• is a mau who tries to please the public and never succeeds." The answer was deemed satisfactory. The list of sub-registrars for doqrs for the Piako county, will be found in our advertising columns. Mr J.S. RckUnd will offer for sale at Cambridge, on the 22nd March, a. choice lot of really good croM-bred wethers, jist arrived from u 12' cr * »!."«? D . ext Cambridge cattle sale will be Mi on the 25th, and the Otuuno sale on tho Wife