Jenkins v Harbour View Courts Limited and Others - [1966] NZLR 1

Company law — Companies under Companies Act — Reduction of capital — Company erecting building of flats — Contracting to grant lease for 99 years of one of such flats to each holder of certain of its shares — Rental to be fixed annually by directors at amount sufficient to cover outgoings with some provision of reserves — No provision made for profit to company on rental — Whether such contract a return of capital to shareholders — Whether ultra vires — Companies Act 1955, s. 75.

Landlord and tenant — Company erecting building of flats — Contracting to grant lease for 99 years of one of such flats to each holder of certain of its shares — Rental to be fixed by directors of company each year — Date of termination of lease fixed by written agreement but date of commencement not specified — Possession given and taken — Whether lessee may enforce specific performance of agreement to lease where rental to be determined in future.

Property law — Real property and chattels real — Own your own flats — Company erecting building of flats — Contracting to grant lease for 99 years of one of such flats to each holder of certain of its shares — Rental to be fixed annually by directors at amount sufficient to cover outgoings with some provision of reserves — No provision made for profit to company on rental — Date of termination of lease specified in agreement but date of commencement not so specified — Possession given and taken — Whether decree of specific performance may issue to lessee where rental to be determined in future and date of commencement not shown — Whether contract ultra vires the company as being a return of capital to shareholders.

Practice — Specific performance — Agreement for lease — Possession given and taken — Agreement specifying date of termination of lease but not date of commencement — Rental to be fixed in future — Whether decree of specific performance of agreement to be granted to lessee.