ALLEGED MISFEASANCE.

Taranaki Daily News, 15 March 1921, Page 5

ALLEGED MISFEASANCE.

HEAVY DAMAGE CLAIMED. By Telegraph.—Press Association. Auckland, March 14. In the Supreme Court, before Mr. Justice Sim, the shareholders of the Dominion Portland Cement Company claimed £-190,000 from certain directors of the company, who were called upon to show cause why they should not contribute that amount in consequence of alleged misfeasance and alleged breaches of trust while acting as directors. The plaintiffs were Sir Geo. Clifford, Dr. Levinge, W’. M. Hamilton (Christchurch), James Stevenson (Foxton), and Geo. Thompson (Spreydon), contributors and shareholders. The defendants were V. H. Reed, George Winstone and H. B. Williams. Mr. Skerrett, opening the case for plaintiffs, said there was no dispute as to the facts. The question was as to the inferences to be drawn from the facts. Counsel read extracts from the prospectus, which he said showed the capital was fully subscribed, but the whole capital was not payable until July, 1915. A paragraph in the prospectus stated that the company had the right to acquire hydro-electric power from the Wairau Falls at £9 per horse-power per annum. That arrangement fell through andf the directors spent £BO,OOO in harnessing the falls themselves, the allegation being that they did so without the sanction of the shareholders, when they had only £lOO,000 capital and after their own advisers had them they would need £170,000 apart from providing hydroelectric power. Further, having failed to raise £55,000, the estimated cost of the hydro-electric works, they involved the company in an expenditure of £200,000, the directors not knowing where to lay their hands on an additional aixnenoe.