Cuthbertson v. Maxtone Graham (Liquidator of Irvine and Fullarton Property Investment and Building Society) [1905] ScotLR 43_17 (18 October 1905)

Cuthbertson v. Maxtone Graham (Liquidator of Irvine and Fullarton Property Investment and Building Society) [1905] ScotLR 43_17 (18 October 1905)

Article 16 of the society's rules operates automatic forfeiture of shares and cessation of membership upon exhaustion of paid-in sums by fines for arrears, without need for further act or notice by the society. The objector's membership ended in 1882, and he cannot be included in the list of contributories.

Citation
[1905] ScotLR 43_17
Parties
Objector/respondent: James Cuthbertson junior; Liquidator/reclaimer: James Maxtone Graham (Liquidator of Irvine and Fullarton Property Investment and Building Society)
Jurisdiction
Scotland
Judgment Date
18 October 1905
Procedural Posture
Company Winding Up Objection / Appeal (reclaiming Note) From Lord Ordinary's Interlocutor
Outcome
Appeal dismissed; interlocutor of Lord Ordinary adhered to.
Legal Topics
Building Society Rules, Forfeiture of Shares, Contributories List, Automatic Forfeiture, Notice Requirements
Company Law Insolvency Law Building Society Rules Forfeiture of Shares Contributories List Automatic Forfeiture Notice Requirements

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Parties

James Cuthbertson junior

Objector/respondent

James Maxtone Graham (Liquidator of Irvine and Fullarton Property Investment and Building Society)

Liquidator/reclaimer

Procedural Posture

Company Winding Up Objection / Appeal (reclaiming Note) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Does article 16 of the society's rules operate automatic forfeiture of shares for non-payment of instalments, thereby terminating membership without further act or notice?
  2. 2 Is notice to the member a condition precedent to forfeiture under article 16?
  3. 3 Should the objector's name be included in the list of contributories in the liquidation?

Ratio Decidendi

Article 16 of the society's rules operates automatic forfeiture of shares and cessation of membership upon exhaustion of paid-in sums by fines for arrears, without need for further act or notice by the society. The objector's membership ended in 1882, and he cannot be included in the list of contributories.

Court Disposition

Appeal dismissed; interlocutor of Lord Ordinary adhered to.

Orders

  • Objector's name to be removed from the list of contributories.
  • Objector entitled to expenses of his objection out of the liquidation funds.