Public Company – Winding-up – Where Partners of a Firm held Stock for themselves and the Survivor for behoof of the Firm.
Two persons had carried on business for some years, when it was agreed to form a new firm with a third partner. Prior to the execution of the contract of copartnery, but with a view to the arrangements of the new firm, stock in a bank of unlimited liability was purchased, by the original partners and the transfer taken in favour of themselves, ‘and the survivor for behoof of the firm.’ The new partner was not a party to the transfer. The entry in the stock ledger was in similar terms. In a petition for rectification of the list of contributories, upon which the names of the two partners were entered, each being described as ‘trustee for’ the firm- held ( affirming judgment of Court of Session) that their names were rightly so entered, each being liable in solidum, and not merely for half the amount of stock held by them.
Judges:
Lord Chancellor (Cairns), Lord Hatherley, Lord O’Hagan, Lord Selborne, Lord Blackburn, and Lord Gordon
Citations:
[1879] UKHL 815, 16 SLR 815
Links:
Jurisdiction:
Scotland
Company
Updated: 04 July 2022; Ref: scu.637965
