Re Standard Fire Insurance Co. (Caston's Case)

Re Standard Fire Insurance Co. (Caston's Case)

The court held that Caston was properly placed on the list of contributories because the combination of the power of attorney, the credit entry in the company books, the issued share certificate stating ten percent paid, his acceptance of the certificate and warrant of attorney, and his failure to repudiate while...

Source-derived case information.

Citation
(1886) 12 SCR 644
Parties
Appellant/contributory: Caston; Respondent/company: Standard Fire Insurance Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 May 1886
Procedural Posture
Appeal / Supreme Court Judgment on Appeal From Court of Appeal for Ontario
Outcome
Appeal dismissed with costs; Caston properly placed on the list of contributories of the Standard Fire Insurance Company.
Legal Topics
Contributories, Subscription for Stock, Payment in Kind/services, Incorporation Requirements, Shareholder Liability
Source Language
english
Commercial Law Company Law Insurance Law Contributories Subscription for Stock Payment in Kind/services Incorporation Requirements Shareholder Liability

Source-derived case record

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Parties

Caston

Appellant/contributory

Standard Fire Insurance Company

Respondent/company

Procedural Posture

Appeal / Supreme Court Judgment on Appeal From Court of Appeal for Ontario

Legal Issues

  1. 1 Whether a subscription for shares is valid when the required ten percent is not actually paid in cash but credited as services
  2. 2 Whether entry in the company books and issue of a share certificate create prima facie shareholder status enforceable against a liquidator
  3. 3 Whether a right to rescind a conditional subscription is lost on company insolvency

Ratio Decidendi

The court held that Caston was properly placed on the list of contributories because the combination of the power of attorney, the credit entry in the company books, the issued share certificate stating ten percent paid, his acceptance of the certificate and warrant of attorney, and his failure to repudiate while the company was solvent amounted to assent by the company or estoppel by conduct such that the subscription was effective for contribution purposes; any right to rescind was lost on insolvency.

Court Disposition

Appeal dismissed with costs; Caston properly placed on the list of contributories of the Standard Fire Insurance Company.

Orders

  • Appeal dismissed with costs
  • Caston to be placed on the list of contributories