CLAIM FOR £190,000.

Taranaki Daily News, 16 March 1921, Page 5

CLAIM FOR £190,000.

BREACHES OF TRUST ALLEGED. A COMPANY DISPUTE. SHAREHOLDERS ’ SUE DIRECTORS; Telegraph—Pres* Association. Auckland, Last Night. The action in which certain shareholders of the Dominion Portland Cement Co. have called upon certain directors of the company to show cause why they should not contribute £190,000 in consequence of alleged misfeasance and alleged breaches of trust while actipg as directors, was continued before Mr. Justipe Sim at the Supreme Court to-day. Mr. C. P. Skerrett, K.C„ on behalf of the plaintiffs, concluded his address thia morning. Counsel dealt with the affairs of the company at length, and uriiicised the actions of the directors. Mr. Myers, by arrangement with the other defending counsel, addressed the Court first on behalf of his client, Heathcote B. Williams. One significant fact, he said, that had probably come under his Honor’s notice, was fhat the plaintiffs did not include amongst their number a single commercial man, although there were many commercial men and business men on the share-list, which contained hundreds of names. It had been left to two sheep-farmers, a medical practitioner, a solicitor, and a baronet who, he believed, was also a sheepfarmer, to commence these proceedings. Why was there not a commercial man among them? The reason was not far’ to seek. Any commercial man of standing and of any experience knew and appreciated the difficulty with which these unfortunate directors had to contend during the greater part of the company’s history. Mr. Myers referred to the period beginning with the outbreak of war, and said a commercial man with experience of the last few years would know that the directors were not to blame for what happened, and that they were the unfortunate victims of circumstances. That was shown by the report on the position made by the committee of shareholders and business men appointed in March, 1917. It was well known that many companies had failed to achieve success, and had lost all their capital, without any blame being attachable to the directors. Plaintiffs could not succeed unless and until they were able to show that the loss of which they complained was due to the acts of misfeasance which they alleged.

Counsel proceeded to reply to the case for plaintiffs in detail, and the case was adjourned.

In this case the plaintiffs are Sir George Clifford, Dr. Edward G. Levinge, William Milne Hamilton (solicitor, Christchurch), and James Stevenson (sheep-farmer, Spreydon). The contributors and shareholders are represented by Mr. C. P. Skerrett, K.C., Wellington, and Mr. Wright, Christchurch; while defendants and their counsel are Vernon Herbert Reed (Mr. Johnstone, Auckland), George Winston, the younger (Mr. McVeagh, Auckland), Heathcote B. Williams (Mr. Myers and Mr. Morison, Wellington).