By writ specially indorsed under Order XIV the solicitors of the respondent company on the authority of its secretary commenced an action in October 1914 to recover certain debts.
The respondent company was registered in London with a capital of pounds 25,000 in pounds 1 shares, only one of which was held by a naturalised British subject, the remainder by Germans. All the directors were Germans and resided in Germany.
The appellants contended (1) that it was illegal to trade with or pay money to or for the benefit of alien enemies during the war, and that in substance and in fact the respondent company was an alien enemy; (2) that the solicitors for the respondent company had no authority to issue the writ in the action.
Held that as the secretary was not ex officio authorised to commence actions on the company’s behalf, and the directors were precluded by their character of alien enemies from instructing him to do so, the action was irregular and unauthorised.
Observations as to the enemy character of companies registered in the United Kingdom and of their directors and shareholders.
Judges:
Earl of Halsbury, Viscount Mersey, and Lords Kinnear, Atkinson, Shaw, Parker, Sumner, and Parmoor
Citations:
[1916] UKHL 845, 53 SLR 845
Links:
Jurisdiction:
England and Wales
Contract, Company
Updated: 12 July 2022; Ref: scu.630683