Thank you for correcting the text in this article. Your corrections improve Papers Past searches for everyone. See the latest corrections.

This article contains searchable text which was automatically generated and may contain errors. Join the community and correct any errors you spot to help us improve Papers Past.

Article image
Article image
Article image
Article image
Article image
Article image

The Evening Star SATURDAY, OCTOBER 8, 1870.

Among other Acts of general importance passed during the hist session of Parliament, was one to facilitate the winding-up of the affairs of limited liability companies, which has hitherto been a somewhat difficult process. The Act, as specified in the preamble, is intended “ to simplify and render less “ expensive the mode of winding-up “ companies formed under the Limited “ Liability Act, 1865," and “ The Min- “ ing Companies Limited Liability Act “ Amendment Act, 18G!).” The wind-ing-up process is to be begun by a petition, signed personally or by proxy by a majority in number and value of the shareholders, being presented to a Judge of the Supremo Court, or District Court Judge or Kesident Magistrate acting within the district within which the company carried on business. This petition may either refpiest that the company may be wound tip by the Official Agent, or by one of three persons named ; but before the petition can be received, the signature and “majority in number and value,” and the matter of the petition,” must

be verified by the oaths or affidavits of two or more shareholders. We have given the words of the Act, “ number “ and value,” and presume “ number ” relates to shares and not shareholders. If so, it would have been better to have specified it, as otherwise a doubt may arise, and the present Act be another added to the loose legislative enactments that are so annoying and expensive. On receipt of the petition, “ it shall be lawful, in addition to any “ other mode heretofore prescribed,” for the judge or magistrate to issue “ an order or decree for the wiuding- “ up ” of the company by the Official Agent, or by one of the persons selected by the Court from those named in the petition, who is to be “ deemed a duly- “ appointed Official Agent.” The jurisdiction of the Resident Magistrate is, however, limited to cases in which the total debts or liabilities of the company applying for the order do not exceed three hundred pounds. The duties of the Official Agent are First. To ascertain the amount of debts or liabilities of such company, and to estimate the cost of winding-up, including the cxjiense of collecting and distributing the assets, and all other charges. Secondly. To prepare a schedule of contributions, shewing the names of all the shareholders in the company liable to contribute, the amount of their unpaid calls, and the proportionate amount required to be contributed by each in order to liquidate the claims upon the company, with a fair estimate to cover the amount of contributions that may prove irrecoverable. This done, the Official Agent must send by post to every one liable to contribute, a statement of the amount ot his liability, with a notice that some day not sooner than twenty-one days from the date of the notice, objections to the scheme of contribution will be heard before the District Court Judge, Resident Magistrate, or two Justices of the Peace acting in the district in which the company was carrying on business. On the day named or any adjournment of it, any person named in the schedule may appear personally, or by an agent authorised in writing to act on his behalf, and object to his name being placed on the schedule, or to the estimates made by the Official Agent. On the objections being heard, and any evidence in support of them, the presiding officer of the Court has power to amend the schedule, and annex an order to it ujion all persons named to pay the amounts stated. The order may be enforced in the same manner as a judgment of the District Court or of a Resident Magistrate. If it should prove that the amount recovered by the Official Agent is insufficient to liquidate the liabilities of the company and the costs and expenses, he is authorised to prepare a further schedule of contribution from the same contributors, which must be “ settled, il ordered, and enforced in the same “ manner - as the previous one.” No contributor will be entitled to object to this second schedule, excepting on the ground of the amount charged against lain. Of course, every man appointed to this arduous and possibly unpleasant duty must be paid. In the present case, it would bo manifestly but poor remuneration for the trouble of wind-ing-up, were the Official Agent merely paid according to the money collected ; although it would have been better to have contrived some mode of insuring industry in collecting debts due to the company, by apportioning a special percentage to that branch of duty. However, this is not clone ; for it is provided that in return for his labor in winding-up the company, he is to receive five per cent, on the amount paid by him of the liabilities of the company wound up, “ instead of the amount colIccted by him.” The accounts arc to be audited by the Official Auditor, who is to receive three guineas for each company whose accounts come under his inspection under the Act. The last clause repeals sections thirty-eight and thirty-nine, and the proviso in section thirty-five of the Mining Companies Limited Liability Act, 1865.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/ESD18701008.2.11

Bibliographic details
Ngā taipitopito pukapuka

Evening Star, Volume VIII, Issue 2346, 8 October 1870, Page 2

Word count
Tapeke kupu
867

The Evening Star SATURDAY, OCTOBER 8, 1870. Evening Star, Volume VIII, Issue 2346, 8 October 1870, Page 2

The Evening Star SATURDAY, OCTOBER 8, 1870. Evening Star, Volume VIII, Issue 2346, 8 October 1870, Page 2

Help

Log in or create a Papers Past website account

Use your Papers Past website account to correct newspaper text.

By creating and using this account you agree to our terms of use.

Log in with RealMe®

If you’ve used a RealMe login somewhere else, you can use it here too. If you don’t already have a username and password, just click Log in and you can choose to create one.


Log in again to continue your work

Your session has expired.

Log in again with RealMe®


Alert