The appellant was an original partner of Douglas, Heron, and Co. He was of the committee named by the subscribers for regulating their plan of operations, and was present, either personally, or by proxy, at seven of the nine general meetings of the partners, which were held during the subsistence of the Company, as a banking society. He was, therefore, it was stated, in the full knowledge of the Company’s transactions. The Company having become insolvent in June 1772, the question for determination was, Whether the appellant, in these circumstances, could decline paying his share, along with the other partners, of the money which it was necessary for each partner to contribute, in order to pay the debts of the Company?
The appellant had only paid up pounds 200 of his subscribed capital of pounds 500; and the present action was raised against him for the pounds 300, and for an additional call of pounds 200 to pay off the debts.
Held the appellant liable to contribute his proportional share of the debt owing by the Company, he being a partner of the Company.
Citations:
[1779] UKHL 6 – Paton – 800
Links:
Jurisdiction:
Scotland
Company
Updated: 08 September 2022; Ref: scu.562031