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LAW REPORTS

SUPREME COURT

INTERESTING COMPANY CASE,

'An interesting company case was decided in the Supremo Court yesterday by Mr. Justico Edwards.

Max Jacob Schneideman, a tailor, formed his business into a limited compaty, the capital of which was to be £4000. /Scbnoideman sold the business to tho company in consideration for 3500 fully paid-up £1 shares. Ho also took 440 contributing shares, and thi'ee other persons took twenty contributing shares each. In 1912 and 1913 the business yielded net profits of between £700 and £800, although Schneideman. had drawn out substantial sums.. In 1913 Schneideman informed Oscar Gerald Kember that ho Wished to sell his shares and leave for Australia. As a result of negotiations, Henry Martindale, of Scott, and Martindale, decided to offer £550 for Schneideman's shares. _ The offer was _ and nil shares' passed into the hands of Kember, Scott, and Martindale. The company failed, and the creditors ssked the Court to declare that the 3500 fully paid-ui| shares should bo declared to be contributory, and that Kember, Scott, and Martindale, should bo liable for the full amount of the value of the shares. The case was decided in favour of tho defendants on two grounds:— 1. That where paid-up shares havo been issued in consideration of property transferred or services rendered, the value of the property or services cannot be inquired into unless the agreement pursuant to which -the shares were to bo paid in property or servico is impeached for fraud. 2. That in no case can a transferee of shares which have been issued as paid-up Bharos be placed upon the list of contributors in tho event of tho liquidation of the company unless he had notice that the shares transferred to him had been .improperly issued as paid-up shares. His Honour remarked that the conduct of the defendants was absolutely blameless. .

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19161018.2.66

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 10, Issue 2905, 18 October 1916, Page 9

Word count
Tapeke kupu
307

LAW REPORTS Dominion, Volume 10, Issue 2905, 18 October 1916, Page 9

LAW REPORTS Dominion, Volume 10, Issue 2905, 18 October 1916, Page 9

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