Investors subscribed for shares in telegraph companies which they vested in trustees to manage the investment on certain terms. A question arose whether this arrangement contravened section 4 of the 1862 Act which prohibited the formation of an association consisting of more than 20 persons ‘for the purpose of carrying on any business that has for its object the acquisition of gain’ unless it was registered in accordance with the Act.
Held: (inter alia) Brett LJ said that the expression ‘carrying on’ implied a repetition of acts and excluded the case of an association formed for doing one particular act which was never to be repeated.
Brett LJ
(1879) 15 ChD 247, [1880] UKLawRpCh 211, [1874-1880] All ER 1121
Commonlii
Companies Act 1862 4
England and Wales
Cited by:
Cited – GE Capital Bank Ltd v Rushton and Another CA 14-Dec-2005
The bank had entered into a master trading agreement with a trader under which the trader bought motor vehicles as agent for the bank for resale. The vehicles belonged to the bank. The defendant bought all the trader’s vehicles. The defendant now . .
Lists of cited by and citing cases may be incomplete.
Updated: 07 September 2021; Ref: scu.236665