Re Yenidje Tobacco Co Ltd
1916 · [1916] 2 Ch 426 (CA)
Posted By lanbuk.com
- Facts
- Two traders merged their businesses into a company in which they were the only shareholders and directors. They fell out so badly that they would not speak except through the secretary.
- Issue
- Should the company be wound up?
- Held
- Yes. The company was in substance a partnership and there was complete deadlock, so it was just and equitable to wind it up.
- Principle
- Deadlock in a quasi-partnership company can justify just and equitable .
- Why it matters
- It is persuasive on section 350(f).
Words and Latin in this note
- Winding up
- The process of ending a company's life: collecting and selling its assets, paying its debts and distributing any surplus, before dissolution. It may be by the court, voluntary, or subject to the court's supervision: section 343. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.