201
$
Do you observe in almost every case these Application Forms had not been properly completed ? It never struck my notice in what way ?
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"I agree forthwith to pay a case deposit to the bank of .... thereon". In only one case is the percentage filled in ? It looks true, but you can not build on that.
The terms had not been complied with, and one of the most important things left out? There was an agreement to pay.
Although by the terms of your Memorandum and Articles, 5% had to be paid on application, and it ought to be received in
cash, and you say it was not important ? It is a binding contract with an obligation to pay.
Do you say you had a binding contract to take these shares ? We had accepted it.
But you never did accept ? We cannot allot unless we had 5%
You had no contract as a matter of fact. There can be no binding contract to take shares unless these shares were allotted ? There shares were never allotted but there was
an acceptance by letter asking them to send along their deposit.
These applications were received in August I am still dealing with this $1,133,000. In November 1927, did you
transfer in your books $963,000.00 of that amount from Issued Capital to Allotment Suspense ? We transferred it from Issued Capital to Application for shares.
And then to Allotment Suspense ? You are making that statement.
Well was it so ? The writing says "Issued Capital to Application for Shares Account".
Application for Shares the title has been altered to Allotment Suspense - and this is the first item. So eventually it finished up in Allotment Suspense ? That explains it.
O.R:- It is in A.1 Ledger, My Lord, page 50.
That was transferred to Allotment Suspense A/C ?
Yes.
Why was that done ? Because they looked doubtful.
They were doubtful in November, 1927 ? But subsequently some of them became good.
Subsequently some became good; but what was entirely had and has always remained bad was this $1,133,000 ? That is what events have proved. We did not know they were bad. For instance
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one item there we were corresponding as late as March of this year - we were expecting to get it.
Included in that $1,133,000.00 there is an amount due from a man Kwan Hoi Tin $450,000.00 ? Right.
He had 1000 shares elready forfeited for non-payment? I don't remember when they were forfeited, but they were
forfeited, yes.
You did not consider that good did you? I did not consider
10.