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The Pamphlet Collection of Sir Robert Stout: Volume 75

[introduction]

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A sitting of the Supreme Court was held [unclear: on] August 2 by his Honor Mr Justice Williams [unclear: for] the purpose of taking the liquidators' el[unclear: amination] of the Hon. George M'Lean respecting the affairs of the Colonial Bank of New Zealand.

His Honor took his seat on the bench at 11 O' clock.

Mr Solomon, with him Mr Brent, appeared [unclear: for] the official liquidator to conduct the examination; and Mr Holmes and Mr W. Sim appeared for the Hon. Geo. M'Lean.

His Honor said: I understand you desire that the examination should be in public.

Mr Sim: Mr M'Lean does not object to its [unclear: being] public.

His Honor: If he wishes it of course it can be public.

Mr Hosking: I propose to ask leave to appear for the Bank of New Zealand. I am instructed to appear to watch the interests of the bank, and I do not think there is any objection. I do not know that any matters will arise affecting the Bank of New Zealand, but one does not know what may arise in these inquiries. I admit that I may have no locus standi to put questions.

His Honor: There is no reason why you should not appear to watch the proceedings, but the right to put questions appears to be a different matter.

Mr Hosking: I might feel myself justified in asking counsel for the liquidators to put certain questions.

His Honor: That may be. The mere suggestion of a question to the liquidators of that kind would be unobjectionable.

Mr Hosking: I do not know that any questions will arise affecting the Bank of New Zealand; I am simply instructed to watch the proceedings.

Mr Sim: I have no objection to my friend appearing to watch the proceedings. I do not admit his right to ask questions; but there would be no objection, if he wishes any question asked, to its being asked through Mr Solomon.

Mr W. C. MacGregor: I ask leave to appear on behalf of the Shareholders' Committee.

His Honor: Who are they?

Mr MacGregor: The body of shareholders on whose behalf an appearance is entered in the book.

His Honor: I suppose you can appear in the same way. As to asking questions, your position would be the same as that, of the Bank of New Zealand.

Mr MacGregor: I do not know. The cases seem to show that it is a question for the discretion of the judge to allow contributories to ask questions. But I do not know that I shall wish to ask any.

His Honor: Well, we can wait and see.

Mr Solomon said: I appear with my friend Mr Brent for the liquidators. So far as the

His Honor: His counsel asked that he should be allowed to do that.

Mr Sim: It was agreed to.

His Honor: That there should be a written statement.

Mr Sim: That the proceedings should be commenced by Mr M'Lean making a statement.

His Honor said he rather understood that it was to be a written statement to be submitted page 2 to the other side—he might be wrong, but it was his impression that that was understood in order to let Mr M'Lean put his view of the case forward first, and also to facilitate the work of counsel on the other side, since if he had Mr M'Lean's statement before him at the beginning, he would be able, perhaps, to shorten the proceedings.

Mr Solomon said he understood that a written statement had been prepared, and that his friends on the other side wished to read it.

His Honor: Better swear Mr M'Lean, then.

Mr Solomon protested against this, submitting that the examination was to be an examination by the liquidators, and that the statement by Mr M'Lean was not part of the examination. His Honor had said in Chambers, when the order was being discussed, that it was not desirable that Mr M'Lean should be first examined by his own counsel, and if he now made on oath a statement which presumably had been prepared by his own counsel that would be equivalent to doing what his Honor had said was not desirable. What the liquidators wanted was viva voce evidence. If the written statement was followed by the question "Is that statement true?" he (Mr Solomon) would certainly object, and he thought his objection would be upheld.

His Honor said it might be objected to if put in that form.

After discussion by counsel as to what took place when the order was arranged,

Mr Solomon suggested that to save a waste of time Mr M'Lean's statement should be read, and if Mr Haggitt, who represented the liquidators when the order was made, said that the arrangement was that this statement should be part of the examination he (Mr Solomon) would loyally stick to it, and arrangements could then be made whereby it would form part of the examination.

His Honor consented to this suggestion, and

Mr Holmes read the following statement:—

As all creditors of the bank have been paid, or will be paid, in full, and the only interests affected by the liquidation of the hank by the court are those of shareholders, I think it right at the outset to show