*
A. Que
A.
18
Q.
A.
Q.
A.
5804
56
If a person applying to the Company in his or her own name for shares, the applicant would be personally liable in respect of those shares?. Yes.
If you see shares in the Share Register in the name of a given person and nothing on record of a trust, would you be prepared to accept the shares as property of the person named? Certainly.
If you find that the shares have been paid for in cash as to 10% would you not assume that had been paid by the owner, with his or her own money?. Certainly.
And if no notice of a frust appears on the Comp- any's records, would the Company have to acknow- ledge having received cash?,
Certainly.
Questioned by Mr. Thomson, Foreman of the Jury.
A. Q.
A.
PDE ♪ EDE
A.
Q.
A.
BY COURT.
Q.
A.
Can you see any reason why shareholders should have been asked to fill in these forma?, 1 could not answer that question.
when the Company was founded the applicants were asked to pay 5. A little later they were asked to pay a further 5, apparently they were in need of ready cash but instead of actual cash being paid on the second call, they were allowed to fill in a promissory note.
I could not answer that question, it is entirely a matter with the Bank. I would only be too pleased to get my share capital into some solid security, provided the people were people whom I could call on demand.
You would accept a mere signature as a security?. Yes.
You have only $5.00 can you see any reason for using the form?.
The Directors were in the unique position by being able to call up the whole of the 95% on demand. Far better than calling up on capital?.
Yes, I think so.
Would you not have called up more capital in the first place? Here is little more than 5% on some and 10% on some,
I would
(Statutory Report referred to) You say you might have drawn that Report up different.
Can you sugest how?.
I might have added a rider to the extent of this, That included in the amount of 876,750.00 a por- tion of that amount was paid for by loans made to the shareholders for which personal security had been given. my whole idea of this transaction is this, once the transaction took place of trans- ferring capital to loan, in my opinion, are fully paid up shares.
(Mr. Brewer said that Mrs. Brewer was at the disposal of His
Lordship and -r. Fitzroy but it was decided that “rs. Brewer's evidence was not required).
(COURT ADJOURNED 3.30 p.m.)
(Legal Parts).