ACTION FOR DAMAGES

Waikato Times, Volume 94, Issue 14613, 14 March 1921, Page 5

ACTION FOR DAMAGES

ALLEGED BREACH OF TRUST. COMPANY DIRECTORS SUED. £190,000 CLAIMED. (By Telegraph—Press Association.) AUCKLAND, Monday. In the Supreme Court, before Mr Justice Sim, shareholders of the Dominion Portland Cement Company claimed £190,000 from certain directors of«the Company, who were called upon to show cause why they should not contribute that amount in consequence of alleged misfeasance and alleged breaches of trust while acting as directors. The plaintiffs were Sir Geo. Clifford, Dr. Lcvinge, Win. Hamilton (Christchurch). James Stevenson (Foxton). and Geo. Thomson (Spreydon), contributors and shareholders. The defendants were V. 11. Reed, George Winstone, and 11. B. Williams. JVIr Skerrett, in opening the case for the plaintiffs, said there was no dispute as to the facts. The question was a* to the inferences to be drawn from the facts. Counsel read extracts from the company's prospectus, which he said showed that the capital was fully subscribed, but the whole capital was not payable until July, 1913. A paragraph in the prospectus stated that the company had the right to acquire hydro-electric power from Wairua Falls at £9 per horse power per annum. That arrangement fell through, and the directors spent £BO,OOO in harnessing the falls themselves, the allegation being that they did so without the sanction of the shareholders, when they had only £IOO,OOO capital, and after their own advisers had told them that they would need £170,000 apart from providing hydro-electric power. Further, having failed to raise £53.000, the estimated cost of the hydro-electric works, •they involved the company in the expenditure of £200,000, the directors not knowing where they could lay their hands on an additional sixpence. The case is proceeding.