The following is a report from a home paper of the legal proceedings that followed the recent shareholders' meetin; ion, the matter Holt and others was mentioned.—Mr. id his Lordship would remember tha mons taken out by the directors of th Mutual 8 igation Company, Ltd. asking for tions of the Court as t the distribution of a bonus of £25,000, which Mr. Richard Holt, a shipowner of Wa street, Liverpool, had offered to the with a view of inducing the shareholders to part with their shares, and give him a pre ponderating interest in the management of the company. The summons came befor rdship last month and it stood over pending the holding of a general meeting of the company. The mi had been held, and according to a not, he believed, donts, the meeting passed a resolut thousing the directors to distribute the wh £25,000 as they thought fit. That involved nearly £22,000, divided in this wa £11,280 to the employees of the company and' the balance of £10,000 among directors. The real contest was as to distribution of the £10.090 among directors, As to the £11,280 for the ployees, he understood that all parties were desirous that that portion of the fund should be distributed in the way proposed by the directors, and supported the present appli tion, which was that £11,280 might be distributed in accordance with the scheme put forward by the directors among the employees, the rest of the summons standing over as regards the contested £10,000.
Mr. Macnaghten, K.C., said he appeared for Mr. Nelson. one of the shareholders who had sold his shares. He was a respondent to the summons. and his position always had been that this cash in the bands of the directors helonzed not to the company. but to those shareholders who Sad sold their shares. That would be a point for his Lordship to deal with on the summons. So far as the employees were concerned. he had no objection to their being paid. He did not see how it could be contended on any view that there was any objection to the payment of the employees. With reverd to the meeting, he ssid that had nothing to do with the fund, but if it had. then he said the meeting was altogether irregularly held. First, gentleman took the chair who had no right there. Then there was voting by proxy, which, be alleged, was not properly done, His Lordsbip—Do y obj you raise any objection because the Chairman got up, and said the proxies (which he had in his pocket) carried the resolution. to the £11,280 heine paid?
Mr. Macnaghten replied that he saw no objection, subject to this: His Lordship would remember that on the last occasion a number of his learned friends came and claimed to represent independent employees, who wanted more than it was proposed to give them. He said this distribution must be final, and the rest of the fand ought not to be subject to any further claim.
His Lordship said he to impose any' cond i hat anybody else might te considerable dificult fon the summons. Whoever ela must bring an action. He could not impose the condition thatthe emplogces should take the £11,280 in full discharge.
Mr. Frank Evans said he appeared for Mr. Holt, who paid the £25,000. ud he desired to wash his hands of the matter. He had no objection to the £11,280 being paid to the employees so long as no further claim was made on him.
Mr. Eve suggested that the directors should pay those employees only who were i receipt in full discharge of launs against this fund.
His Lordship said that was a very reason: able way of delling with the matter.
Mr, Whitehead said he appeared for Mr. Low, the secretary of the company, who would be entitled io £600 out of the fund an employee, but in accepting that he did not give up his right, whatever it might be, to share in tie £10,000.
His Lordship said if Mr. Low did not agree take the £600 in full discharge of his claim, he was wot bound to take it, He might stand out now and bring an action, or he could take it now in full discharge.
Mr. Bovill, for Captain Gulland, the managing director, said he did not oppose the proposal.
His Lordship said the only order he stimuli make was that Uiose who accepted in full di should be paid. Anyone else who alleged " larger claim was to be left to take Such proceedings as he thought fit to establish his claim.
Order accordingly, the rest of the summons standing over.
"Kaw Reports.
Text read from the printed page and cleaned; old type leaves the occasional error.