DAIRY COMPANY'S PETITION

Taranaki Daily News, Volume LVII, Issue 57, 28 July 1914, Page 7

DAIRY COMPANY'S PETITION

A ROMANTIC DEVELOPMENT. The rapid development of the dairy industry, a development far exceeding the expectations of those who witnessed, and were responsible for, its establishment in New Zealand, ia illustrated in a somewhat striking manner in a matter ■which came before the Court of Appeal on Thursday (says the Wellington Post). The Awatuna Co-oporative Dairy Com•pany, Ltd., operating in Taranaki, eouglit power to amend its Memorandum of Association to enable it to considerably extend its operations even to ineluding, if necessary, its own shipping requirements and facilities. The petition first came before Mr. Justice Edwards at New Plymouth, in February last, but was refused because his Honor wanted first more convincing evidence that all the shareholders we "e agreed upon such important changes in the company's field of operations and for other reasons specified. A second time the petition came before the same Judge, and his Honor's opinions were similarly expressed, but in view of the importance of the matter, and of the mecessity for all the shareholders being fully protected, the petition was referred, with Mr. Justice Edwards' con•urrence, to the Appeal Court this morning. Mr. C. H. Morison, K.C., and with ■him Mr. V. It. Meredith, appeared for the dairy company in support of 'Jic appeal. There was no opposition offered.

Mr Morison briefly traced the growth of the company. It was formed in July, 1834, at a period when the dairy industry was in its infancy and no notions were 1 entertained of the dimensions to which \ it would in a few years develop. The I «onßequenee was that the memorandum of association at that date provided ] Merely for the limited expectations of those times. The original capital was £IOOO, but in the following year this 1 ■was increased to £2000; in" 1900 to £4000; in 1!)07 to €6OOO, and in 1013 an increase was made to .€IO,OOO, and that, said Mr. Morison. was the present capital of the company. The shares allotted ■umbered £si>2o. When the cqrapanv firHt started it merely sought power to manufacture and sell dairy produce, hut its powers were gradually extended to the present capacity of an up-to-date exporting co-operative dairy concern; and now it sought power to buy nil descriptions of animal Joods and retail tliem among its members, deal on the cooperative principle in stud stock, purchase up-to-date dairy machinery and engines, and retail them to members, and "to charter or otherwise acquire ships, steamers, and other vessels" for the carrying of (lie company's produce, anil for otherwise carrying on the company's business in all parts of the Dominion, or in Tfom" or foreign parts; to seek or join in trying to find and obtain markets and selling exchanges in any part of the world.

Mr. Justice Edwards: A cn-opcrati*e dairy company is a, company which makes Initti-r and cheese and sends it to London for sale. , . Now you want to go info the hardware and machinery business. and all oilier departments you »ame. Mr. Morison: The intention is to help the farmer in hi* farm and by assisting him to improve his milk and thus finable the company to send away better produce. Sir Robert Stout: I think you will

Mr. Justice Dcnniaton: Can these enterprises be undertaken against the wish of a dissenting minority of shareholders? Mr. Morison submitted that there was no opposition whatever' to the petition. The petition had been duly advertised and the resolutions had previously been confirmed at a to'-eting of shareholders. Mr. Justice Edwards expressed doubts about the proposal to purchase or acquire ships. Would it be in the shareholders' interests to enter into competition of this description? Sir Robert Stout: You can't object to chartering vessels if you have goods to put in them.

Mr. Justice Edwards: But is it reasonable that you" should be allowed to acquire ships? Mr Morison said that different dairy companies might want to join the charter or acquire ships to compete with the shipping companies, and to do this they must each have legal power. They wanted to be able to get fair rates or run their own vessels. There was a large amount of money behind them.

Mr Justice Edwards said he would require something more specific as to the proposals regarding the acquiring or hiring of vessels and the combining with other companies. The shareholders must he protected from anything savoring of Tash speculation. Mr Morison said this course would only incur needless expense and might prove unavailing if the Court still withheld its decision. This power they sought simply had to be obtained, evan if it means getting new articles of association. The development of the industry must go on, and the company had to keep apace. The Court finally reserved its decision.