Burton v. Contributories of Home Ass. Co.

Burton v. Contributories of Home Ass. Co.

Majority: In a winding-up under the Dominion Winding-Up Act of a company subject to the Alberta Insurance Act the phrase 'maturity of the debt' in s.60(2) is not fixed by s.119(9) of the Alberta Insurance Act but is for the Court to determine under the Winding-Up Act; therefore the liquidator may call for the full unpaid balance on each share.

Citation
[1950] SCR 591
Parties
Appellant (liquidator): Alfred Gordon Burton; Respondents (contributories): Contributories of Home Assurance Company of Canada
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
23 June 1950
Procedural Posture
Winding Up Under Dominion Winding Up Act (company Liquidation) / Appeal to Supreme Court of Canada From Supreme Court of Alberta, Appellate Division
Outcome
Appeal allowed (majority); trial judge's order restored with variation
Legal Topics
Winding Up, Contributories, Calls on Shares, Maturity of Debt, Statutory Interpretation
Source Language
English
Commercial Law Company Law Insurance Law Insolvency Law Winding Up Contributories Calls on Shares Maturity of Debt +1 more

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Parties

Alfred Gordon Burton

Appellant (liquidator)

Contributories of Home Assurance Company of Canada

Respondents (contributories)

Procedural Posture

Winding Up Under Dominion Winding Up Act (company Liquidation) / Appeal to Supreme Court of Canada From Supreme Court of Alberta, Appellate Division

Legal Issues

  1. 1 Whether a liquidator may call for the full unpaid balance on shares despite instalment provisions in the Alberta Insurance Act
  2. 2 Whether 'maturity of the debt' in s.60(2) of the Dominion Winding-Up Act is fixed by s.119(9) of the Alberta Insurance Act or by the Court in winding-up proceedings

Ratio Decidendi

Majority: In a winding-up under the Dominion Winding-Up Act of a company subject to the Alberta Insurance Act the phrase 'maturity of the debt' in s.60(2) is not fixed by s.119(9) of the Alberta Insurance Act but is for the Court to determine under the Winding-Up Act; therefore the liquidator may call for the full unpaid balance on each share.

Court Disposition

Appeal allowed (majority); trial judge's order restored with variation

Orders

  • Order of Macdonald J. restored authorizing the liquidator to make a call for the full unpaid amount on each share; time for payment extended to September 15, 1950; costs of the parties to be paid out of the assets of the company