COMPANY FAILS

Rotorua Morning Post, Volume 2, Issue 593, 26 July 1933, Page 5

COMPANY FAILS

(Press Assn.

action to obtain the appointment of liquidator SOLICITOR NOT APPROVED

— By Telegraph— C-myright).

Auckland, Tuesday. In the Supreme Court yesterday an application for the removal of a liquidator appointed in the winding-up of a company of Otorohanga storekeepers was granted hy Mr. Justice Smith; The application was made hy Mr. Bagnall, oii behalf of other Auckland merchants. It was stated the majority in value of the creditors desired that the present liquidator, Mr. J. F. Trapski solicitor, of Otorohanga, should be removed from his office and another nomdnated in his place by the creditors. A reason for the request was that Mr. Trapski had acted as solicitor to the company, McNamara and Company, Limited, and he was therefore not in a sufficiently independent position to act as liquidator to the company. It was also stated he had failed to take the necessary steps to recover from P. J. McNamara, one of the shareholders in the company, certain moneys which the company had paid to him under circumstances which it was admitted amounted to a fraudulent preference. During the hearing it was stated that about £2300 was owing hy the company to creditors, and counsel snid it was anticipated the assets would he more than sufficient to satisfy all claims. . , His Honour reached the decision that Mr. Trapski should he removed and another liquidator appointed in , his place, but he said that at the same time there was no reflection on 'Mr. Trapski's integrity or ahdlity- The question of the appointment of a new liquidatpr was held over to enable the parties to confer.