UNUSUAL ACTION.

Manawatu Standard, Volume XLVII, Issue 8, 7 December 1926, Page 7

UNUSUAL ACTION.

SALE OF 100 YEARS LEASE,

AUCKLAND, Dec. 6. An action, which involved a point of law that was said to bo without precedent in New Zealand, was the subject of a reserved judgment by Mr Justice Ostler in the Supreme Court to-day. The case was a motion by the liquidator of Victoria Street Properties, Ltd., taken under section 226 of the Companies Act, 1908, for the determination of certain questions arising out of the voluntary liquidation of the company. The company acquired a lease of land, which is situated at the corner of Victoria, High, and Kitchener streets, from the trustees of the Outhwaite Estates for 100 years, at a rental of £2OOO per year for the first forty years, and £3OOO for the remainder of the term. Tho company subsequently sold the lease at a profit to Unique Properties, Ltd., the sale being approved by the trustees, and Victoria Street Properties, Ltd., went into voluntary liquidation. When the liquidator found himself in a position to return the capital to the shareholders and divide Srofits, he was pressed by the shareolders on the one hand, and by the trustees on the other. The trustees intimated that they would hold Victoria Street Properties responsible for the performance of certain conditions of the lease, in addition to payment of rent. Mr Justice Ostler made an order requiring the liquidator to retain all the assets of Victoria Street Properties, Ltd., and keep tho company functioning until a further order of the Court has been obtained.