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Cotman v Brougham: HL 6 May 1918

A company E, incorporated under the Companies (Consolidation) Act 1908, underwrote and received allotment of shares in the A company which it transferred to the L company. All three companies being in liquidation the liquidator of the A company put the L company on the A list of contributories in respect of the said shares, and the E company on the B list. The liquidator of the E company brought an action claiming to have the E company omitted from the B list on the ground that the underwriting of the shares was ultra vires of the E company.
Held that under section 17 of the Companies (Consolidation) Act 1908 the certificate of incorporation was conclusive evidence that section 3 had been complied with; the memorandum of association was therefore valid, and under it the underwriting was intra vires.

Judges:

Lord Chancellor (Finlay), Lords Atkinson, Parker, and Wrenbury

Citations:

[1918] UKHL 358, 56 SLR 358

Links:

Bailii

Jurisdiction:

England and Wales

Company

Updated: 09 February 2022; Ref: scu.631472

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