NOTICE TO FARMERS.
AN IMPORTANT JUDGMENT. CHRISTCHURCH, May 3. An Important judgment of interest to dairy farmers was delivered by Air Wyveni 'Wilson, S.M.. in the case in which R. Ileminwny claimed £l4 from the Kaikoifra Co-operative Dairy Company, plaintiff having declined to accept from the company shares in lieu of money .
Some time ago the company put in a butter plant, and it was agreed the money should be raised by the issue of 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-fa.t sold.
In the course of his judgment the magistrate said the legal position was well expressed by Mr Justice Salmond in Donald v. the Normanby Co-opera-tive Company Ltd. (1922, G.L.R., ]>. 498) : “A company can not issue or allot shares except to a. person who has agreed with the company to accept them. Shares have their sole origin in a contract between tin* company and the person to whom they originally issued.”
In tiiv present case plaintiff had never contracted to take up more shares, and he should have the money held I>v the company paid to him as the huiuiu-e of the price of butter fat sold.
Judgment was accordingly entered for plaintiff’ for £l-1 and costs."
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Hokitika Guardian, 11 May 1923, Page 3
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229NOTICE TO FARMERS. Hokitika Guardian, 11 May 1923, Page 3
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