Eley v Positive Government Security Life Assurance Co

Facts

The articles said Eley should be the company's solicitor for life. He became a member later. The company stopped using him.

Issue

Could Eley enforce the article?

Held

No. The article gave him rights as solicitor, not as member, so it was not enforceable by him as part of the contract in the articles.

Principle

Outsider rights in the articles cannot be enforced through the statutory contract.

Why it matters

It limits the reach of the section 37 contract.

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