Tait v. Muir [1902] ScotLR 40_242 (19 December 1902)

Tait v. Muir [1902] ScotLR 40_242 (19 December 1902)

The funds of a statutory corporation cannot be appropriated by surviving members for their own benefit; only purposes authorised by the corporation's regulations are lawful. The judicial factor has title to recover funds appropriated before his appointment.

Citation
[1902] ScotLR 40_242
Parties
Pursuer/respondent: John Scott Tait, C.A., Edinburgh, judicial factor on the estate of the Incorporation of Tailors of Edinburgh; Defender/reclaimer: Robert Gillespie Muir; Defender: Trustees and executors of the late James Dundas Grant
Jurisdiction
Scotland
Judgment Date
19 December 1902
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor
Outcome
Appeal dismissed; interlocutor of Lord Ordinary adhered to.
Legal Topics
Appropriation of Corporate Funds, Judicial Factor's Title to Sue, Statutory Corporations, Division of Corporate Assets, Burgh Trading Act 1846
Corporate Law Trusts and Estates Scottish Burgh Law Appropriation of Corporate Funds Judicial Factor's Title to Sue Statutory Corporations Division of Corporate Assets Burgh Trading Act 1846

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Parties

John Scott Tait, C.A., Edinburgh, judicial factor on the estate of the Incorporation of Tailors of Edinburgh

Pursuer/respondent

Robert Gillespie Muir

Defender/reclaimer

Trustees and executors of the late James Dundas Grant

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether surviving members of a statutory incorporation may divide corporate funds among themselves
  2. 2 Whether a judicial factor has title to recover funds appropriated before his appointment

Ratio Decidendi

The funds of a statutory corporation cannot be appropriated by surviving members for their own benefit; only purposes authorised by the corporation's regulations are lawful. The judicial factor has title to recover funds appropriated before his appointment.

Court Disposition

Appeal dismissed; interlocutor of Lord Ordinary adhered to.

Orders

  • Decree against Robert Gillespie Muir and the trustees of the late James Dundas Grant, conjunctly and severally, for payment to the pursuer of £2518 16s. sterling and £1134 12s. 8d. sterling, with interest on £2518 16s. at 5% per annum from 31 March 1901 until payment.