The Appellant Company carried on a bona fide banking business on a restricted scale. It operated primarily to facilitate transactions within a group of companies controlled by its own chairman, managing director and controlling shareholder, F, but there were also a number of deposit and current accounts opened by persons who were not members of the group. It did not utilise the normal clearing-house facilities and met cheques drawn on it either by cash or by drawing a further cheque on a clearing-house bank, N Ltd., who were, in effect, its bankers.
Citations:
[1963] UKHL TC – 40 – 698
Links:
Jurisdiction:
England and Wales
Banking
Updated: 11 June 2022; Ref: scu.559256