(7)
20
On the whole there is no proef beyond reasonable
doubt that Brewer acted mala fide.
as to (d); Brewer swaars that he thought the entries
in the Report were correct: p.25.
(Udy, the accountant for the defence says, without
qualification, that it was correct: Ross, the
accountant for the prosecution, says, with a
qualification, that it was correct.)
There is no evidence contradicting the existence of
such a state of mind in Brewer,
The history of the shares afterwards acquired
by the Instone Trading Co. is irrelevant; for the
moment of allotment is the crucial moment to be
considered in connection with the question whether or
not the allotment was for cash, and the decision
r garding the allotment of these shares was taken
at a Directors' meeting which Brewer did not attend
(Document (9) in file 2). At the moment of allotment
these shares stood on the same footing as the other
shares, except that the promisor's premise to pay was
fortified by a guarantee from the Directors. Al though
this guarantee may be unenforceable, Brewer cannot be
held responsible, because he did not attend the
Directors' meeting.
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