Reports of Cases Heard and Determined by the Lord Chancellor and the Court of Appeal in Chancery [1862-1865] (Volume 3) (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1874. Excerpt: ... In the Matter of The STRAND MUSIC HALL COM- 147 PANY (LIMITED), and In the Matter of The COMPANIES ACT, 1862; Ex parte The EUROPEAN AND AMERICAN FINANCE CORPORATION (LIMITED). 1865. July 21, 22. August 3. Before the Lords Justices. One clause in the articles of association of a company provided that the company, in extraordinary special general meeting, might authorize the borrowing of such sum or sums of money, and on such terms and conditions as they might think fit.' Another clause provided that the directors might borrow such sums as they thought fit, but not above 10,0002., unless borrowing a larger amount should have been previously authorized by a general meeting: Held, that the former clause did not restrict the latter, and that a borrowing to the extent of 30,000/., authorized by an ordinary general meeting, was valid. The directors of a company borrowed 5000/. from A. B. under a written agreement, one of the terms of which was, that 2000 mortgage bonds of 50/. each, "forming part of 25,000/. of mortgage bonds constituting a first charge on the property of the company," should be deposited with A. B. as collateral security for the sum, which was secured by two promissory notes of 2500/. each: HM, that as the directors had power to charge the property of the company, and the intention to create the charge appeared from this agreement, a valid charge was created, though the mortgage bonds were invalid through incompleteness. The directors afterwards borrowed a further sum of 2700/. from A. B., and deposited with him other incomplete mortgage bonds, with a letter stating that they were deposited "as collateral security for our promissory note for 2700/., the securities to be held on same terms and conditions as those under agreement with reference t...