Ranking – Society – Company and Individual Estate – Principles of Ranking.- (1) Held that a company are entitled to rank on an individual partner’s separate estate, pari passu with the creditors of that separate estate, for the whole amount of debts owing by the company after deducting any dividends that may have been paid to the company creditors. But, (2) Held in the House of Lords, that where, after a dividend on an estate was declared, and most of the creditors paid, a new claim was lodged for the first time on the estate, that such claim will not be allowed to disturb or affect the dividend paid before any notice was received of such claim.
Citations:
[1777] UKHL 2 – Paton – 437, (1777) 2 Paton 437
Links:
Jurisdiction:
Scotland
Company, Insolvency
Updated: 25 November 2022; Ref: scu.562001