MINING CALLS.

Taranaki Daily News, Volume LIII, Issue 107, 13 August 1910, Page 8

MINING CALLS.

A SHAREHOLDERS' MEETING. By Telegraph.—.Press Association. Auckland, Friday. A matter of general interest to mining companies was involved in an appeal brought in the Supreme Court today by the Kapanga Gold Mining Company against a decision given by Mr. Kettle, S.M., in the Magistrate's Court at Auckland in connection with a claim by the company for the recovery of £l4 3s 4d from Mrs. Margaret A. Bridson, of Coromandel, the amount of a first call of 2d per share oa 17,000 shares.

Mr. Kettle gave judgment lor plaintiff, with costs £1 Is,, and the company appealed on the question of law. Mr. Hanna for appellants pointed out that the Magistrate held, in giving his j decision that) Under section M$ Ol the Companies Act proceedings for the recovery of a call in a mining company must be instituted within fourteen days, otherwise the remedy against the shareholders was absolutely gone, and under section 357 that the shares having been forfeited and offered for sale but not sold there was no balance to be recovered, 'it was argued that both these conclusions were wrong, counsel contending that section 352 of the Companies Act did not make it obligatory on plaintiff company to issue proceedings for the recovery of a call within fourteen days after the call became payable, out the power to sue at any time was discretionary. The interpretation of section 357 of the Act Mr. Hanna was in the direction of the defaulting shareholders 'being liable for the amount of the call, and expenses in the event of the forfeited shares not realising at public auction the total sum due. Several ( judgments on the point..were quoted. Mr. Stanton, for respondent, argued that when shares were once forfeited the company lost its right to sue, and the only subsequent .power was to proceed under section 357 of the Act for the recovery of a balance, but not for a call. He contended that the intention of the Legislature had to be reviewed, and when this was done it was clear that the Magistrate had decided correctly in the original claim. His Honour reserved his decision.