NOTICE TO FARMERS.

Hokitika Guardian, 10 May 1923, Page 3

NOTICE TO FARMERS.

AN IMPORTANT JUDGMENT. CHRISTCHURCH, May 3. An important judgment of interest to dairy farmers was delivered by Mr W'yvern Wilson, S.AL.iiu the ease in which R. Ileminway claimed £l-1 from the Kaikmrra Co-operative Dairy Company, plaintiff having declined to accept from the company shares ill lioa of money . Some time ago the company- put in a butter plant, and it was. agreed- the nionov should bo raised by the issue ot further shares, suppliers' to take one share for each two cows milked. Plaintiff, who is a shareholder in the defendant company, and a. supplier to the factory. declined to take shares in lieu of cash, for butter-fat sold. Tu tlie course of bis judgment the magistrate said the legal position «a., u elT expressed bv Mr Justice Salmond in Donald v. the Normanby Co-opera-tive Company Ltd. (1922, G.L.R., p. 498) : “A company cannot issue or allot shares except to a person who has agreed with the company to accept them. Shares have tlioft* sole origin in a contract between the' company and the person to whom they originally issued.”

In tin* present case plaintiff bad never onntraoted to take lip more shares, and he should have the money held by the company paid to him as the balance of the price' of butter fat sold.Judgment was accordingly -entered for plaintiff for £M and costs."