CO-OPERATIVE COMPANIES.

Gisborne Times, Volume XXV, Issue 2057, 30 April 1907, Page 4

CO-OPERATIVE COMPANIES.

INTERESTING LAW SUIT. There was something akin to the rule of preference to unionists, or the principles of a close corporation, at the hack of the Taranaki case of McGregor v. Piliama Co-operative Dairy Co., Ltd., judgment in which was given at Wellington on April 23rd hv Mr. Justice Cooper. Plaintiff, who is a member of the defendant company, sued on behalf of himself and all other shareholders of the company for an order of the Supreme Court restraining the company from manufacturing and selling goods of non-members of the company An alteration ill tho company’s memorandum of association was made in December, 1902, by the Registrar of the Supremo Court at New Plymouth, under "which non-members were included ill the scope of the company’s operations, and by which the company was given power to borrow money, and to lend the same to “such persons. companies, or firms as shall he approved of by the directors.” Tho company, under the amended articles, had claimed the right to manufacture goods of non-members; had refused to purchase milk from the plaintiff unless at a halfpenny per pound of butter-fat less than the company had paid to other shareholders ; and had sought to compel shareholders to increase their liability in respect of the debts of the company, with a view to borrowing money and of lending money other than money invested under tho powers given by the articles before amendment. ”

His Honor, held (in accordance with agreement made between the litigants) that tho registrar had no jurisdiction to make the order for amendment of tho articles; that, the alterations of tho articles were invalid and of no effect; and also that for the future the plaintiff must be paid the same price for his milk as other suppliers wore paid. As to whothor tho company had power under its original memorandum of association to manufacture goods for non-members, His Honor held there was no such power. It. was a “cooporatico company,” and that title made it clear, taking the definition of the Standard Dictionary, it was one established for carrying on business amongst its members. His Honor did not know of- any judicial interpretation of the term “co-operative,” but “co-operative company” was generally understood to mean one in which the business was confined to the members of the society. The company must he restrained from obtaining raw material from non-members; and as regarded the borrowing and lending of money the injunction to restrain must also issue.

The janitor of the Timnru High | S«hool has resigned, to retire on a superannuation allowance of Cl a week, under the Teachers" Superan. niistion Act. after five years' service. A member of the High School Board expressed surprise that a janitor, after such a short service, came nmlci the scheme at all, and especially that he should receive an allowance almost equal to that paid to the late secretary to the Board of Education after a service of half a lifetime.

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