JOINT STOCK COMPANIES.

Temuka Leader, Issue 1157, 27 March 1884, Page 3

JOINT STOCK COMPANIES.

At the Rangiora Court on Monday morning, before C. Whitefoord, Esq., R.M., the case of Rangiora Linseed Oil and Fibre Company, Limited v. J Stoker, a shareholder, claim £lO 10s for calls, came on. Mr Spackrnan for defendant. It was found defendant had not received notices of the calls, and a nonsuit was recorded, defendant’s solicitor allowed costs. Rangiora Linseed Oil and Fibre Company, v. H. Stone, £lO 10s. Mr Gresson for plaintiffs ; Mr Spackrnan for defendant. In this case the points raised by the defendant’s counsel, were that the summons did not comply with the Act; it further did not allege defendant to be a member of the Company ; that the prospectus referred to a Company with a capital of £30,000 in £1 shares, whereas it consisted of one of £IO,OOO in £2 shares ; that out of the provisional directory of twenty six persons only three being elected, defendant’s faith in the Company was affected ; that the Company was not legally registered, the Companies Act providing that the registered memorandum of association “ shall be printed,” whereas the registered copy was in writing, and objection was further taken to the times of making calls, the first one being made on December Bth, payable on March 10th, whereas the Company was not incorporated till March 14th. Counsel for plaintiffs replied to the allegations, and the Resident Magistrate decided that the plaint was good, and the bill of particulars complete. The prospectus he looked upon as the only means of bringing the persons together who formed the company, and it must have been well known that the twenty-six provisional directors, “ with power to add to their number,” would not form the directory. He held that the memorandum of association having been produced with a certificate of its registration it was not for him to say it was bad in respect of being a written instead of a printed document. Respecting the calls due be accepted the minutes as conclusive evidence, and gave judgment for plaintiffs with leave if necessary for defendant to appeal on some of the points raised.