New Balkis Eersteling, Ltd v. Randt Gold Mining Co., Ltd [1904] UKHL 867 (25 March 1904)

New Balkis Eersteling, Ltd v. Randt Gold Mining Co., Ltd [1904] UKHL 867 (25 March 1904)

The purchaser of forfeited shares is in the same position as if the prior call had never been made and is liable to pay any subsequent call properly made by the company on the unpaid balance of the shares.

Citation
[1904] UKHL 867
Parties
Defendant/appellant: New Balkis Eersteling, Limited; Plaintiff/respondent: Randt Gold Mining Company, Limited
Jurisdiction
United Kingdom
Judgment Date
25 March 1904
Procedural Posture
Civil Appeal / Appeal From Court of Appeal (england) to House of Lords
Outcome
Appeal dismissed; judgment for the plaintiffs/respondents affirmed.
Legal Topics
Forfeiture of Shares, Liability for Calls on Shares, Construction of Share Certificate, Companies Act 1862, Table a, Article 22
Company Law Forfeiture of Shares Liability for Calls on Shares Construction of Share Certificate Companies Act 1862, Table A, Article 22

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Parties

New Balkis Eersteling, Limited

Defendant/appellant

Randt Gold Mining Company, Limited

Plaintiff/respondent

Procedural Posture

Civil Appeal / Appeal From Court of Appeal (england) to House of Lords

Legal Issues

  1. 1 Whether a purchaser of forfeited shares is liable for fresh calls after being discharged from all calls due prior to purchase under Companies Act 1862, Table A, Article 22
  2. 2 Whether the company can make a second call on forfeited shares after sale to a new holder

Ratio Decidendi

The purchaser of forfeited shares is in the same position as if the prior call had never been made and is liable to pay any subsequent call properly made by the company on the unpaid balance of the shares.

Court Disposition

Appeal dismissed; judgment for the plaintiffs/respondents affirmed.

Orders

  • Appellants to pay the sum sued for (£2605 5s. 10d.) and costs.