Cunliff's Trustees v. Cunliff [1900] ScotLR 38_134 (30 November 1900)

Cunliff's Trustees v. Cunliff [1900] ScotLR 38_134 (30 November 1900)

The company validly exercised its power to capitalise profits and issue new shares as capital; trustees are bound to hold and administer the new shares as capital of the trust estate, and the liferenter is not entitled to them as income or to the cash equivalent.

Source-derived case information.

Citation
[1900] ScotLR 38_134
Parties
Applicant: Cunliff's Trustees; Respondent: Mrs Cunliff; Respondent: Children and representatives of a deceased child of the truster
Jurisdiction
Scotland
Judgment Date
30 November 1900
Procedural Posture
Special Case / Judgment
Outcome
first and second questions answered in the negative, third in the affirmative
Legal Topics
Liferent and Fee, Rights of Liferenter and Fiar, Capitalisation of Profits, Distribution of Reserve Fund, Trust Administration
Succession Trusts Company Law Liferent and Fee Rights of Liferenter and Fiar Capitalisation of Profits Distribution of Reserve Fund Trust Administration

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Parties

Cunliff's Trustees

Applicant

Mrs Cunliff

Respondent

Children and representatives of a deceased child of the truster

Respondent

Procedural Posture

Special Case / Judgment

Legal Issues

  1. 1 Whether newly issued shares from capitalised reserve fund are income or capital for liferenter and fiar
  2. 2 Whether liferenter is entitled to new shares or cash equivalent as revenue
  3. 3 Whether trustees must retain new shares as capital of trust estate

Ratio Decidendi

The company validly exercised its power to capitalise profits and issue new shares as capital; trustees are bound to hold and administer the new shares as capital of the trust estate, and the liferenter is not entitled to them as income or to the cash equivalent.

Court Disposition

first and second questions answered in the negative, third in the affirmative

Orders

  • Trustees are entitled and bound to retain and administer the 352 shares as part of the capital of the trust estate.
  • Liferenter is not entitled to have the shares transferred to her as revenue or to receive payment of the sum applied in payment for the new shares.