Three solicitors were in partnership. It was agreed that one would retire. He would take 10,000 pounds on retirement and his share of undrawn profits after an account had been taken. When the accountant certified the profits in line with previous partnership practice, the other partners objected to the sum payable, saying undrawn profits had been appropriated for the purchase of capital assets. New accounts were drawn reflecting this. The retiring partner objected to the result, saying the accountant had already given his certificate under the agreement, and sought a declaration as to what sum was payable. The other partners said that the accountant having given his certificate, the court had no jurisdiction to make any order.
Held: There had been no agreement for the second certificate, and the retiring partner was not bound by it. The court had full jurisdiction to make the declaration sought, and would exercise its discretion to make it in order to avoid leaving the retiring partner with no relief without a new certificate. There was no way of restoring the position. Once the error of principle was properly established it would be possible to establish from the draft accounts what sum would properly be certifiable.
Judges:
Goulding J
Citations:
[1974] 1 All ER 401, [1974] 1 WLR 9
Jurisdiction:
England and Wales
Citing:
Cited – Frank H Wright (Contractors) Ltd v Frodoor Ltd 1967
There was an error on the face of the certifcate of an accountant. The court looked at when it might go behind the certificate of an accountant on a question referred to him by agreement of the parties.
Held: In this case the error was . .
Cited – Dean v Prince 1953
An auditor had valued the shares in a private company under its articles. The court was asked to look behind the valuation: ‘In my judgment the valuation cannot stand. I propose, therefore, to declare that the valuation is not binding upon the . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 12 December 2022; Ref: scu.238764