An application was made by M Paul Premet before Judge Cattand in the French Consular Court yesterday on behalf of the Pare des Sports (Auditorium), operators of the Hai Alai for the dismissal of the action for an accounting brought by several shareholders against the directors of the business, The hearing was adjourned until Tuesday next, May 13, when M, d'Auxion de Ruffe will reply to M, Premet, Plaintiffs alleged through their counsel at a former hearing that the directors of the Auditorium had paid to themselves certain sums of money in excess of their proper remuneration and reserved the right to ask for the dismissal of the accountants of the company, charging them with dereliction of duty, They also asked for an order of the court to invalidate the resolutions passed at the last annual meeting of the company.
M. Premet submitted for the defence that the grounds for the action were unjustified according to French law, The plaintiffs, he declared, had reproached the directors and the management, The case concerned the operations of a societe, anonyme or limited company, he submitted, whose actions must be governed by the decision of a majority of shareholders. He went on to declare that an overwhelming majority had passed the counts at the annual meeting.
Counsel then argued that a decision of the majority shareholders cannot be assailed or modified by a tribunal, If the majority of shareholders have upheld the action of the directors, he contended, a minority cannot ask for a recision of any measures, including operating expenses agreed upon by the directors with the assent of the majority shareholders, Since the establishment of the Auditorium eleven years ago, counsel said, all accounts had been approved and passed in accordance with the requirements of French law.
M, Auxion de Ruffé yesterday filed an amendment to his original petition, including Messrs, M. Nicole, J. Sauvayre and Eh, Ballandras as codefendants with M. Bouvier, Chairman of the Board of Directors,
Text read from the printed page and cleaned; old type leaves the occasional error.