THE LANCASTER LAND CO.

Dominion, Volume 6, Issue 1845, 3 September 1913, Page 5

THE LANCASTER LAND CO.

INTERESTING ACTION.. ; His Honour Mr. Justice Chapman was engaged some hours yesterday at the Supreme Court ill inquiring into the transaction of the Lancaster Land Company, Ltd., on a judgmont summons issued by the liquidator, Mr. W. R. Beauchamp-Platts, who applied for an order 'determining the following questions in regard to those shareholders who had purchased land: — Whether the agreement between the company and tho shareholders was valid, and if so, to what extent was it valid and effective? What were the rights and liabilities of tho shareholders who wero parties to the' agreement (a) in respect to I the agreement, and to tho purchaso moneys paid or payable thereunder ? (b) in respect of calls made upon 1 shares hold by such shareholders? Were the shareholders, or any of them, parties, and,, if so, which of them, properly placed upon the list of contributories of the company in liquidation ? What was the liability of tho board of directors in respect of tho agreement? Mr. D. M. Findlay represented Mr. Beauchamp-Platts, tho liquidator. Mr. Neilson appeared for A. Williams, a director; Mr. R. M. Watson for J. W. Jack, director and shareholder: Mr. H. E. Anderson for W. G. Morpetli, shareholder; Mr. D. R. Haggard for Richard Woodmaii, H. V. Futter,' and W. Jenson, shareholders; Mr. R. B. Williams for P. B. Thomson, shareholder; and Mr. P. H. Putnam for A. J. Croll, shareholder. His Honour: I suppose tho shareholders have all tho same interest? Mr. Findlay replied that that was so, but there might be consideration affecting the directors separately. Somo shareholders of those before the Court were parties-to tho agreement in question. Some had taken title whilst others had not. That was tho only distinction. All thoso interested were represented except Mr. W. H. Newborough, who had left New Zealand. Tho company was incorporated in October, 1906, as a limited liability company, with a capital of £22,500 in £1 shares, which were fully subscribed, except that 500 wero forfeited. On August 20, 1907, the company entered into an' agreement of purchase-, but had not taken title for the whole of the land agreed to be purchased. Tho company was formed for tho purpose of subdividing and selling tho Lancaster Estate, and part of the scheme was to sell as much of the land as it could to the shareholders. Eventually, the company went into liquidation because of its inability to meet tho claims, and it was expectod by tho liquidator that there would be no money left to return to tho shareholders. On March 3, 1909, the company entered into an agreement, with its shareholders, whereby the latter were given the option of taking land from the company at a fixed price, and 70 per cent, of the purchase money was to go to the vendors. A number of shareholders took advantage of that agreement, and the order was asked for with regard to those shareholders who had purchased land. After counsel for each of the other parties had addressed tho Court, his Honour reserved his decision.