Citation(s) [1895] 2 Ch 891 | Decided 13 November 1895 End date November 13, 1895 | |
Full case name In Re Anglo-Austrian Printing and Publishing Union or Brabourne v Same Similar Re Parkes Garage (Swadlinc, Re Shoe Lace Ltd, Re Yeovil Glove Co Ltd, Phillips v Brewin Dolphin B, Re Gray's Inn Construct | ||
Re Anglo-Austrian Printing & Publishing Union [1895] 2 Ch 891 is a UK insolvency law and company law case, concerning recovery of assets under a misfeasance action.
Contents
Facts
An official receiver was appointed to pursue the former directors of the Anglo-Austrian Printing & Publishing Union for misfeasance, and other funds. It recovered £7000 in damages for misfeasance and £1200 in calls on unpaid shares from former shareholders. However, a group of debenture holders had not yet been paid. They claimed the money recovered was theirs, given that it first went to the company on which they held charges, and could not be used to pay unsecured creditors before the debentures were paid off.
Judgment
Vaughan Williams J held, reluctantly, that money recovered during liquidation from in proceedings under section 10 of the Companies (Winding-up) Act 1890 and by calls on contributories, belong to debenture holders charging all the undertaking and property of the company, when total assets are not enough. Costs for such proceedings must be paid first out of money recovered in those proceedings.