Court Court of Appeal Citation(s) (1879) 11 Ch D 36 | Decided 19 February 1879 End date February 19, 1879 | |
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Re Rica Gold Washing Co (1879) 11 Ch D 36 is a UK insolvency law case concerning the liquidation when a company is unable to repay its debts. It held that a shareholder, to having standing to bring a winding up petition must have a sufficient tangible interest in what is left over after winding up.
Contents
Facts
A member of the company wished to petition to wind up the company, a gold mining operation in "Colombia". He held 75 fully paid up £1 shares.
Hall VC dismissed the petition, holding that his interest was not sufficient.
Judgment
Lord Jessel MR said for a fully paid up shareholder, ‘it must be that after full payment of all the debts and liabilities of the company there will remain a surplus divisible among the shareholders of sufficient value to authorise him to present a petition.’ This shareholder, with 75 paid up £1 shares, did not have sufficient tangible interest. His judgment went as follows.
Brett LJ and Bramwell LJ concurred.