DISTRICT COURT, CLYDE.

Dunstan Times, Issue 738, 9 June 1876, Page 2

DISTRICT COURT, CLYDE.

—o—(Before Judge Harvey.) Monday, June 5, 1876. In the matter of the Pneumatic Gold Mining Company (in liquidation) and in the matter of the Mining Companies’ Act, 1872. Application by liquidator to settle list of Contributories. Liquidator, Mr J. S. Hickson, in person. Mr Wilson for Messrs Fames, Cox, and Naylor. (Judgment.) Mr Wilson opposed the order settling the list of contributories on behalf of his clients, so far as they would be affected thereby, on the following grounds. As to Fames and Cox that although they had paid the 4th Call, they had not paid the 3rd, and that the 3rd Call not having been sued for within fourteen days from the date whereon it became due, their share#

were absolutely forfeited under Sec. 64, and that the subsequent payment of 4th Call had not the effect of redeeming the shares under Sec. 56, and that consequently they were absolved from all liability in respect thereof. And as to Naylor that he having neglected to pay the 4tn Call, and the same not having been sued for, was in like manner absolved from liability. With regard to the 3rd Call not paid by Enmes and Cox, the same is a debt due to the Company under Section 62, as is also the 4th Call not paid by Naylor, and although the remedy by action in the name of the manager or liquidator is barred by lapse of time, yet it is not compulsory on the liquidator to sue, and lam of opinion that these persons are properly put on the list of contributories in respect of such debts. It now remains to be seen whether they be liable (beyond the calls) to contribute to the assets of the Company for the purposes thereof, and for its debts, liabilities and obligations to the extent remaining unpaid on their respective shares. The contention on their part is that they are not liable, inasmuch as the shares are absolutely forfeited Under Sec. 54. Now taking the three Sections 54, 55 and 66 together, the Court is of opinion that they were intended for the benefit and protection of the Companies, and in order to obviate the necessity of having to resort to complicated legal proceedings in order to obtain declaration of forfeiture of the shares held by defaulting shareholders, and to prevent Companies being afterwards called to account by shareholders standing by until the Claim should turn out remunerative. Moreover, the forfeiture cannot be considered os absolute until after the sale by the Company of the shares under Sec. 55 for the shareholder ; until then he has a right to come in and redeem the shares by payment to the manager of all dalle due, Ac, More than one Call could not become due if the share wore absolutely forfeited on non-payment of the first call. The shares in question have not been 1 sold, and the names of these shareholders still remain on the Register. Section 13 states that every person in whose name any share in a Company shall be registered in the Register of members shall, while it shall be so registered, be liable to contribute to the assets of the Company for the purposes thereof, and for its ■debts, liabilities and obligations, and for adjusting the rights of the shareholders amongst themselves to the amount from time to time remaining unpaid on such share.

The Court is therefore of opinion that if a shareholder wishes to avail himself of the provisions of Sec. 54, and to free himself from liability udder Sec. 13, his proper ■course would be to apply to have the Register rectified under Sec. 35, by striking his name therefrom—and that so long as his name remains on the Register of shareholders, so long he will be liable under Sec. 13, notwithstanding the provisions of Sec. •54. The Court is therefore of opinion that the shareholders objecting to the making of this order being stillshareholders as appears by the Register, are properly placed by the liquidator on the list of Contributories, and orders that they be retained thereon accordingly. The Court also settles and approves of the list of Contributories filed by the liquidator, and orders that the several persons, whose names are mentioned therein as contributories, shall pay the respective amounts annexed to their respective names in Coluihn, No. 14 of the said list.