518
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irst part, the Instone Trading Co. of the second part and Mrs Dorothy Brewer of the third part ? I would like to mention that on the original both sets of signatures are there. The signatures of the directors at the directors meeting having approved, and of the principals to the agreemont.
(This agreement was road).
That agreement provided that the Instone Trading Co. shall purchase certain shares of the Instone Banking Corporation, and shall pay the purchase price thereof ? Correct.
Nothing was paid ? There was actually no bank notes or coin passed. But if you read that agreement we are obliged to give them something and they are obliged to give us something.
Taking it in my sense of the word, no cash was paid for these shares ? No coin or bank notes were paid in your sense of the word.
200
Judge: The Instone Trading shares were handed to your company, the Instone Bank, and apparently they were fully paid up shares ?
Q.R: The second clause of the agreement, is:- (clense read) As a matter of fact no cash in my sense of the word, was ever received in respect of that $10,000.00 ? It would have been
received had the Compary functioned.
But as the Company did not function no cash was received ? It could not pay its debts, but there was a reasonable expectation of that money being received.
That $10,000.00 which had never been received was carried to your Profit and Loss Account as part of your trading profit for that rear ? Of course.
Nothing had ever been received ? It was still a current debt.
And if I may say 60 still a bad debt ? No, had it not been for the closing of our company, it would have paid its debts. (Clause 3 read). It never did pay any money ? Clauses 1 and 3
set each other off.
It was not a cash transaction in fact ? The agreement states the intention of the parties.
The intention of the parties was that it should be a cash transaction but in fact it was not a cash transaction
No.
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you agree
(Re.Mrs.Brower as director of Instone Trading Co. clause'read). That does not concern us ? It does concern the company,which you will find later.
On June 1st, was Mrs. Brewer allotted $480,000 shares in the Instone Banking Corporation ? As trustee.
Judge:- Trustee for whom ?
Trustee for certain applicants. By reason of the decision of the directors meeting, when they requested that she should do so. People who did not pay their money, but it was certain they would come and pay for their shares.
On the 1st June she, according to the shareholders ledger, paid $48,000.00 ? Yes.
27.