East of England Banking Company ex parte Isaac Bugg
| Jurisdiction | England & Wales |
| Judgment Date | 01 January 1865 |
| Date | 01 January 1865 |
| Court | High Court of Chancery |
English Reports Citation: 62 E.R. 692
HIGH COURT OF CHANCERY
S. C. 35 L. J. Ch. 43; 11 Jur. (N. S.) 616; 12 L. T. 696; 13 W. R. 911. See King's case, 1871, L. R. 6 Ch. 200.
Contributory. Winding - up Purchase of Shares in Name of Trustee.
[452] east of england banking company. Exparte isaac bugg. May 15, June 24, 1865. [S. C. 35 L. J. Ch. 43; 11 Jur. (N. S.) 616; 12 L. T. 696; 13 W. R. 911. See King's case, 1871, L. R. 6 Ch. 200.] Contributory. Winding-up Purchase of Shares in Name of Trustee. A., desiring to take shares secretly in a banking company, purchased shares in the names of B. and C., into whose names the shares were transferred. It was admitted that A. paid for the shares, and was to receive any profits from them ; but at the time of the purchase the company were not informed of this. The deed of settlement provided that the company should not notice any trusts, and that no sale of shares should take place without the consent of two directors. On the company being wound up, B. and C.'s names had been settled on the list as contributories. Upon application of five contributories to have A.'s name put on the list: Held, that it being a bond fide case of trustee and cestui que trust, and not one of principal and agent, A.'s name could not be placed on the list. This was a summons adjourned from Chambers, the object being to place Mr. Isaac Bugg on the list of contributories under the winding up of the above banking company, in respect of fifty old shares, in the place of George Alden Stevens, and in respect of eighty new shares in the place of John Benstead Bugg; or in conjunction with their names respectively. 2 DR. & SM. 453. EX PABTE BUGG 693 The summons was taken out by five shareholders, who had been settled on the list as contributories. . It appeared that Mr. Isaac Bugg, who was a solicitor at Norwich, being desirous in May and June 1864, as he stated in his affidavit, of taking shares in the above bank, purchased the shares, in respect of which it was now sought to place his name on the list of contributories ; but, not wishing that his name should appear as a share holder, he purchased the shares partly in the name of his brother, Mr. John Bugg, and partly in the name of Mr. Stevens, his (Mr. Isaac Bugg's) clerk. The proposals to transfer were duly approved of and consented to by two directors, in accordance [453] with the llth section of the deed of settlement set out below; and the actual transfers were made into the names of Mr. John Bugg and Mr. Stevens. It was, however, admitted that the shares were paid for by Mr. Isaac Bugg out of his own money ; that Mr. John Bugg and Mr. Stevens were trustees for him ; and that some dividends, the warrants for which were made out in the names of, and signed by, Mr. John Bugg, and received by him, were afterwards handed over to Mr. Isaac Bugg. The shares so purchased, it afterwards turned out, were directors' shares. The bank stopped payment in January 1864 ; and, it appeared, had been insolvent for...
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