CALLS ON FORFEITED SHARES.

Dominion, Volume 3, Issue 927, 21 September 1910, Page 10

CALLS ON FORFEITED SHARES.

AN APPEAL. ' (By Telegraph.—Press Association.) Auckland, September 20. Mr. Justice Edwards allowed the appeal in the ease of the Kapaiiga ffioldmining Company against the decision of-Mr. Kettle, S.M., in a claim of the company against : Margaret A. ' Bridson for £1 3s. 4d., calls on .forfeited shares. A call was made on April 8. Respondent had failed to pay on April' 22, and on June 16 the shares were offered for salo by auction. There being no bid" they were placed in a 'register in the: company's name,'- and subsequently reissued. The case was dismissed by Mr. Kettle, 5.M., : on .'the 'ground that Section 352 of : the Companies Act, .1008, • had not. been complied with, as proceedings had not been: begun within fourteen days., after the'.call became payable. The' Judge reviewed the law at some' length. , He..said; that , under: Section 357 there was. no limit .of time within 'which the; action, must be brought,' and therefore iio' objection. to amendment. of the claims at any' time'.' The question to be ; determined , was whether tho 'case was within paragraph ' 2. of Section 357,. and this had been determined, by Mr; Justice Williams in re the liquidator of the, Victoria •..Gom-l pany v. Kerr.' " If unhamperM 'by authority. he would liave thought para.graph 2' of : .Section 357' was; governed.' by' paragraphl of the .'same ; section,. and ftliat no part of that section, would apply .unless there had been a. sale of tne shares. : ,He'should.hare thought, sale and forfeiture of shares had the results. _ of foreclosure; " and that while :it-extinguished'the right of the, shareholder to. the shares, .-and ; to any claim iii respect of ', the ' shares,-'.it also extinguished the debt which was the basis of foreclosure. Had the attention of , the S.M.. been called to .ii certain ■ decision of : Mr. Justice Williams, arid; to tlie history .of . subser quent l legislation, he.' would no ;>: doubt: have comc to the conclusion to which ho was himself, driven. -.The' appeal was upheld. ; v ' ; v.' .v. 1