OIL COMPANY

Rotorua Morning Post, Volume 2, Issue 544, 30 May 1933, Page 5

OIL COMPANY

(Press Assn.-

SHAREHOLDERS ALLEGE FALSE PROSPECTUS ISSUED

— By Telegraph — Copyright).

Auckland, Monday. The hearing of a claim for damages arising out of the affairs of the Speedwell Oil Company of New Zealand, Ltd., was resumed in thg Supreme Court. The claim is for £4633, made. on behalf of George Ernest Smerdon, jeweller, of Auckland, and 48 other shareholders in the company residing in various parts of the Domiriiqii, against Harry Plinton McElwain, company manager of Auckland, George Frederick Parkes, company secretary, Auckland, and Murdoch McKenzie Millikin, consulting enginerr, Auckland, f ormer directors of the company. The hearing, which is expected to last a week, commenced in December, but owing to its protracted nature was adjourned over the Christmas vacatipn. The plaintiffs alleged that representations of the prospectus of , the Speedwell Oil Company of New Zealand Ltd., issued by defendants were untrue and tha.t they were made with the intention of misleading the public, an dthat the company did not obtain ?he full minimum subscriptions of £6000 within 90 days as provided in the prospectus. Individual claims ranged from £11 to £221. The cfefence is the general denial of all allegations. After consid,eraJ)l6 evidence the hearing was adjourned.