Re County Marine Insurance Co (Rance’s Case): 1870

The directors of an insurance company had declared a bonus by means of a an account of receipts which failed to deal properly with the risks underwritten. They then sought to have the company wound up voluntarily.
Held: The Directors could be ordered to repay the bonuses declared and paid.
Where a bonus was decided upon after a proper investigation and account, the court should be slow to iinterfere, but where there had been no such investigation it was able to intervene.

(1870) LR 6 Ch App 104, (1870) 40 LJ Fh 277, (1870) LT 828, (1870) WR 291 LJ
England and Wales
Cited by:
CitedHolland v Revenue and Customs and Another SC 24-Nov-2010
The Revenue sought an order under section 212 of the 1986 Act, for payment of the tax debts of the insolvent company by a de facto director. H had organised a scheme under which IT contractors had worked through companies created by him under a . .

Lists of cited by and citing cases may be incomplete.

Company, Insolvency

Leading Case

Updated: 01 November 2021; Ref: scu.467095