DIVIDEND PAYMENTS

Waikato Times, Volume 126, Issue 21034, 9 February 1940, Page 6

DIVIDEND PAYMENTS

COMPANY IN LIQUIDATION SUPREME COURT ACTION Questions affecting the payment of shareholders’ dividends, and whether the arrears of cumulative preference dividends of the Finance of New Zealand, Limited, should be paid in priority to ordinary shareholders, occupied the attention of the Supreme Court, Hamilton, this morning, when an originating summons was heard before Mr Justice Blair. The com- A pany was in liquidation, the liqui- jy dator, who was represented by Mr D. Seymour, being M. M. Shaw. Mr W. J. King appeared for the preference shareholders and Mr C. L. Mac Diarmid for the ordinary shareholders. The company was formed in 1927 and no dividends to any shareholders wore pc id mice 1935. The company went into liquidation on April 4, 1938. The question before the court was whether the preference shareholders were entitled to their dividends for those four years, the dividend not having been formally declared. The amount of the TWMI If the court authorised tne payments, was £4259. Mr Seymour stated that the liquidator wished to assist the court in the matter in any way possible. The money was not yet to hand, but the

liquidator wanted a direction from the court as to what course he should follow.

A considerable amount of legal argument on the point at issue wai heard by His Honour, counsel for both classes of shareholders making a number of submissions concerning their respective clients’ claims for priority.

The hearing was continued thii afternoon.