The Express.
London, England, 1863-02-19 00:00:00

THE EXPRESS, THURSDAY EVENING, FEBRUARY 19, 1863.

iLab) 3Enttilistnet.

EQUITY COURTS.—Fie. 18.
Ware the Lad Ohaeoellee.)

NZ !18TH GIADY.-111 191 ItAtTZE OP MS SWIM PBOVI•

Dan lANI AND 1111

COMPANY.

This Waa an alarmed sammons from the chambers
of Via-Chancellor Kindendiry, which had been placed for
hearing in his lordship'. paper. The object of the appeal
was to have the name of Dr. Grady, the appellant, removed
from the list of metributories for 25 shares in the company,
when it had bees plead by the chief cleric in the Doane
of the proceedings to wind up the concern. It appeared
that Dr. Grady had been one of the medical referees of the
company, and had ceased to be so in 1859, when he brought
an action against the company for a sum exceeding 5004!
A compromise was entered into, by which the company paid
Dr. Grady a half-year's 'slay, gave him a promissory note
for 1001., payable in six. mouths, and his shares were trans-
ferred to Mr. Sheridan. By the deed of settlement the
company powered no power to purchase any shales from
the holders, and therefore, if the shares of Dr. Grady had
ban transferred, as contended by the official manager, to •
Mr. Sheridan, me of dui managing directors, as the nominee
and trustee of the company, Dr Grady wee still • share-
Dokter, and laid.) as a contributory. For Dr. Grady, how-
ever, it was insisted that the shares were transferred to
Mr. Sheridan personally, and not on behalf of the company,
sod the books of the company and the register kept at the
Joint Stock Companies' office were appealed to, in which
the name of Mr. Sheridan was entered as the transferree of
the shares, without any steamiest that he bad purchased
them for the company.
Mr. Roberts appeared for Dr. Grady ; Mr. Bally and Mr.
Sendai for the official manager ; and Mr. &cabbala for
the creditors' representative.
The ere was partly argued on Saturday lest.
The Lord Chancellor now delivered his opinion without
hearing the appellant's counsel in reply, and add that it was
for au ofSeiel manager to make out smelt a owe
ileciroliginduce him to set aside the transfer of the shares
to Sheridan. It was pert of the arrangement with Dr.
Grady that his shares should be transferred to Maiden. It
was urged that this *alder was made to Sheridan as the
nominee of the company, and the transfer was actually to
the company. The fact that the transfer was made to the
company, and not to Sheridan individually, it was said was
well known to Dr. Grady at the time, and the terms of the
compromise wee cited as proof of that knowledge. Dr.
Grady had, however, sworn that the transfer was made
, to Sheridan personally, and that Sheridan, in order to
induce him to consent to the compromise, aid he would take
the shares off his bank Sheridan bad not deeded this state.
meet on affidavit, and he (the Lord Chancellor) would not
therefore lay that Dr. Cindy's statement was untrue ; but
even su that the shares had been bought for the com-
pany, was nothing to prevent such a transaction being
valid, provided certain formilities were observed, namely,
the soquemenos in the purchase by the shareholders in
general. The question in this case was whether the court
mold assume knowledge and acquiescence in the purchase,
on behalf of the company, by the shareholders, after a
lapse of more than two yeah from the time of the
transfer. If an act was done by • company which they
had no power to do, no length of aoquieecenoe could make
that good which was void in the first instance, but after •
lapse of time it might be assumed that certain formalities
had been complied with *make a transaction valid which
would not be so without the aid of such formalities. In
this use all that was required to make • purchase by the
company of duns valid was the sanction of the general
body of shareholders. and the court had a right to assume
such acq after it had bear shown that every-
thing had been to bring the *enaction before
the shareholders. The transfer of the shares to
Sheridan was duly entered and re-entered on the books of
the company ; his name was returned as the holder of the
twenty-eight shares to the registration office, and had re-
mained on the register down to the time of the order for
winding up. Everything had been done to bring the trans-
action to the knowledge of the shareholders, and the court
would assume after • period of more than two year that
the shareholders had acquiesced in the purchase, which was
all that was required to make it valid. The name of Dr.
Grady must be removed from the list of contributories, and
the question of costs remitted to the Vice Chancellor.

EX TARTE um RE EICHOLIION.—BANIREPTCT.
This was an appeal from an order of Mr. Commissioner
Cadburys rejecting • proof against the estate of the bank-
rupt. It appeared that a Mr. Rider was a woollen merchant
at Leeds, and was fa the habit of dealing with a firm in
London defied Nicholson, Pascal, and Stone. In the early
part of the year 1861 he sold that firm goods to the
amount of 1,4001., which were paid for by bilk at four
months, accepted by the firm. In March, 1861, Pascal
withdrew from the firm, which continued to carry
on buboes in the name of Nicholson and Stone,
who subsequently sold goods to Rider to the
amount of 3831., sod they wished him to swept bills
for the amount. He declined at first to do so while the
former bills were running ; but as they undertook to pay
three of the bills accepted by the firm of three partners,
when due, Rider "greed, and took bills for 3001.
On the 16th May Nicholson and Stone became bankrupt, and
Pascal wan subsequently included in the bankruptcy. The
bills for 1,4001. had been discounted for Rider by the
by the Leeds Banking Company, who held them at the time
of the bankruptcy, and they only bad a right to prove
against the estate of the firm of Nicholson, Pascal, and Stone,
and they did so. They also proved on two other bills dis-
counted by them for one Teals, of an exactly similar des-
cription to those of Rider. Teals took the bills out of
the hands of the banking Company, and applied success-
fully to have their proof reduced by that amount, and was
allowed power for the amount against the estate of
Nicholson and Stone. Rider then applied that the proof
of the banking company should be wholly expunged, and •
proof by himself instituted, which was done, and he sought
to prove for his debt against the estate of Nicholson and
Stone only, which was not allowed by the commissioner,
who refuted the proof. Hence the present appeal. The
e themselves
was whether the firm of two bad taken on
the liability of the firm of three.
Mr. Bacon and Mr. Swanston were for the appeal ; Mr.
Daniel and Mr. Bagley on the other side.
The Lord Chancellor smii that the question in this case
depeededom whether' letter which had been written to Rider,
Idaho( that all the liabilities of the old firm would be paid
by the new one, was a new contract or a reiteration of former
general lasuranees of payment. After a full examination
of the documents and transactions he stated that he was of
opinion that there was no new contract, but only • repeti-
tion of the previous statements. The appeal would be dis-
missed with costa.

(Before Viee-Cliancellor Sir B. T. Bindersley.)
THE TM= wamtaxci OOMPAlll.—nirnow roa wurrima UP.
Mr. J. N. Higgins apOied to the court for its direction so
to thewoving of a peMeion for the winding up of the Unity
Inentanee Company. The company, be stated, formerly
carried as basiaaas at Unity.buildings, New Cannon-atrial.
bat the °aloe was now shut up, there was no one there, and
a notice was of to the door stating that the busioese
had been transferred to the British Medical and General
Life Oasurence Comma_ ,v 449, Strand. The third rule
of the general orders of November last said the petition,
union presented by the company, should be served at the
registered office, it any, of the company ; and if there
wee no snob registered office, then at the last known priori-
Pal place of business, on some officer of the company there ;
sad if there were no person connected with the essociation
to be (mod there, then as the court should direct. Toere
warn ministered °aloe, the society not being registered under
the last act, and the last known principal place of business
woo closed. The mass of the directors were known, and
the residences of toss of them, and it was proposed to serve
the petition oe some of them.
The Vim-Chancellor directed that service should be made
on four of the direr ass.