Blaikie and Others v Coats and Others (The British Mexican Railway Co): SCS 21 Nov 1893

Section 35 of the Companies Act of 1862 provides that ‘If the name of any person is without sufficient cause entered in or omitted from the register of any company under this Act . . the person or member aggrieved, or any member of the company, or the company itself, may, . . as respects companies registered in Scotland, by summary petition to the Court of Session, or in such other manner as the said Court may direct, apply for an order of the Court that the register may be rectified.’ . .
A petition was raised under this section by certain shareholders in a company craving the Court to order that the register of the company should be rectified by deleting therefrom the names of certain shareholders, in respect that their shares had been illegally allotted to them as promotion money. The respondents pleaded that the questions at issue could not be competently raised by a petition under the section.
The Court, without expressing a decided opinion as to the competency of the application, held that petition under the section was a very inappropriate and inconvenient way of dealing with the questions raised, and that the proper course for the petitioners was to raise an action of reduction in ordinary form, pending the raising of which the petition should be sisted.
Opinion by Lord M’Laren that section 35 was not intended to create a substitute for the ordinary forms of procedure in cases where there was a strong divergence between the parties as to facts.
[1893] SLR 31 – 115
Companies Act 1862 35

Updated: 18 August 2021; Ref: scu.613372