MISFEASANCE ALLEGED

Waikato Times, Volume 127, Issue 21244, 15 October 1940, Page 2

MISFEASANCE ALLEGED

CHARGE BY SHAREHOLDER RELEASE OF ASSIGNEE (By Telegraph.—Press Association) CHRISTCHURCH, Monday Opposition by a contributory shareholder, who alleged misfeasance by officials of the company, was made in the Supreme Court to a motion for the release of the official assignee from the estate of the Golden Gully Sluicing and Development Company, Limited (in liquidation). The objection was not upheld by Mr Justice Northcroft, who pointed out that the present case had relation only to the application of the official assignee from responsibility on the passing of his accounts. A very large number of allegations against the directors was made in a report two years ago by Hector Milne, a contributory shareholder and former director of the company, said the official assignee, Mr G. W. Brown. He had advised Mr Milne that because of difficulties in liquidation and a conflict between creditors and contributors he was not prepared to spend any money in misfeasance proceedings or in having officials of the company examined. A statement was submitted to the Crown Solicitor for suggestions, and he had replied that the allegations were too general and that if they were to be carried through Mr Milne was to make specific allegations of fraud and to produce evidence to support them. Although that was two years ago, Mr Milne had done nothing further. Mr Milne said he now had further evidence. “If you think action should be taken against those you consider have acted improperly, there is a procedure available to you,” said His Honour to Mr Milne. “I propose to give the official assignee his release, but that does not preclude you from taking other steps against persons whom you consider steps should be taken against.”