DOMINION ITEMS.

Hokitika Guardian, 9 May 1923, Page 3

DOMINION ITEMS.

[bv TELEGRAPH-—-TER tress association.] IMPORTANT JUDGMENT. CHRISTCHURCH, May 3. An important judgment of interest to dairy farmers was delivered by Mr Wyvern Wilson, S.M., in the case in which It. Hemiuwny claimed £l4 from the Kaikoura Co-operative Dairy Company, plaintiff having declined to accept from tho company shares in lieu of money . Some time ago the company put in a butter plant, and it was agreed the money should bo raised by the issue of further shares, suppliers to take one share for each two cows milked. Plaintiff, who is a shi'ireholder in the defendant company, and a supplier to the factory, declined to take shares in lieu of cash for butter-fat sold. In the course of his judgment the magistrate said the legal position was well expressed by Air Justice Salmond in Donald v. the Xormanby Co-opera-tive Company Ltd. (1922, CEL.It., p. 498): “A company cannot issue or allot shares except to a person who Ims agreed with the company to accept them. Shares have their sole origin in a contract between tho company and the person to whom they originally issued.” In tlie present case plaintiff bad never contracted to take up more shares, and lie should have tlie money field bv the company paid to him as the balance of the price of butter fat sold. Judgment was accordingly entered for plaintiff for £ll and costs. RACES POSTPONED. ASHBURTON, May 9. The Ashburton Races have been postponed owing to the bad weather, till Friday and- Saturday, AGy 18th.. and 19th.