Company Law Longman Law Series

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LONGMAN LAW SERIES

LONGMAN
LAW
SERIES

Company Law

Company Law
second edition

second edition

Ben Pettet

Ben Pettet

Professor I.H. Dennis (University College London)
Professor J.A. Usher (University of Exeter)

The second edition of this popular book on company law combines theoretical and
jurisprudential issues with an up-to-date account of legal developments across the field of
company law. The author demonstrates that the needs of shareholders in companies

which have dispersed ownership of shares cannot be properly understood without an
analysis of the law relating to securities regulation and capital markets.

second edition

Company Law is arranged in six sections: Foundation and Theory; The Constitution of the
Company; Corporate Governance; Corporate Finance Law; Securities Regulation;
Insolvency and Liquidation. Strong coverage of theory and policy is provided, together
with analysis of core legal problems at an appropriate depth for modular courses. The role
of self-regulation is examined in some depth and discussion of law reform in the shape of
the DTI's Company Law Review is included.
There is also a companion website for the book at www.pearsoned.co.uk/pettet, which
features regular updates to the law so that lecturers and students will remain up to date
with new legislative and case developments.

Ben Pettet

New to this edition
• Inclusion of the EC Directive on Takeover Bids
• Major changes brought about by the Enterprise Act 2002
• Standard Chartered Bank v Pakistan National Shipping Corporation 2002 and other
important case law developments
• Details of the EC Financial Services Action Plan legislation
• Coverage of the Companies (Audit, Investigation and Community Enterprise) Act 2004
Company Law is essential reading for LL.B. courses in universities and also covers the
requirements of the University of London (External) LL.B. The book offers excellent
foundation reading for postgraduate LL.M.s in company and capital markets law and is an
excellent critical survey of a dynamic field of law for students qualifying professionally in
the fields of accounting, finance and company secretaryship.
Ben Pettet LL.B., Barrister, is Professor of Company and Capital Markets Law, University

College London. He is a well-known researcher and writer in the field of company law.

www.pearson-books.com

Cover image © Photonica

Free updates for this book at
www.pearsoned.co.uk/pettet

Company Law

Editorial Advisory Board


COMPANY LAW


LONGMAN LAW SERIES
GENERAL EDITORS
PROFESSOR I.H. DENNIS, University College London
PROFESSOR J.A. USHER, University of Exeter
PUBLISHED TITLES
ERIC BARENDT AND LESLEY HITCHENS, Media Law: Cases and Materials
R. HALSON, Contract Law
JONATHAN HERRING, Family Law
NICHOLAS J. MCBRIDE AND RODERICK BAGSHAW, Tort Law
BEN PETTET, Company Law
ROGER J. SMITH, Property Law
ROGER J. SMITH, Property Law: Cases and Materials
MAURICE SUNKIN AND ANDREW LE SUEUR, Public Law

MARTIN WASIK, THOMAS GIBBONS AND MIKE REDMAYNE, Criminal
Justice: Text and Materials
WILLIAM WILSON, Criminal Law: Doctrine and Theory

Visit the Company Law, second edition Companion Website at
www.pearsoned.co.uk/pettet
to find regular updates in the field of Company Law


COMPANY LAW
SECOND EDITION

BEN PETTET


Pearson Education Limited
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England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
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First published 2001
Second edition published 2005
© Pearson Education Limited, 2001, 2005
The right of Ben Pettet to be identified as author of this work has been asserted by
him in accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical, photocopying,

recording or otherwise, without either the prior written permission of the publisher or a
licence permitting restricted copying in the United Kingdom issued by the Copyright
Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP.
ISBN-13: 978-0-582-89418-1
ISBN-10: 0-582-89418-2
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Pettet, B. G.
Company law / Ben Pettet.––2nd ed.
p. cm.––(Longman law series)
Includes index.
ISBN 0-582-89418-2
1. Corporation law––Great Britain. I. Title. II. Series.
KD2079.P48 2005
346.41′066––dc22
2005043015
10 9 8 7 6 5 4 3
10 09 08 07 06
Typeset in 10/12pt Plantin by 3
Printed in Great Britain by Henry Ling Ltd., at the Dorset Press, Dorchester, Dorset.
The publisher’s policy is to use paper manufactured from sustainable forests.


CONTENTS

Prefaces
Acknowledgements
Table of cases
Table of statutes

Table of statutory instruments
Tables of European legislation
1 Treaties and conventions
2 Secondary legislation

xv
xviii
xvix
xxx
xli
xliii
xliii
xliii

PART I FOUNDATION AND THEORY
1 THE
1.1
1.2
1.3
1.4
1.5
1.6

NATURE OF COMPANY LAW
Preliminary
Rationale, abstract and agenda
Scope of this work
The genesis of company law
The present companies legislation
European community legislation

A The harmonisation programme
B The Company Law Programme: UK Implementation
C The EC Commission’s Company Law Action Plan
1.7 Company law, corporate law or corporations law?
1.8 Focus – the main business vehicle
A Company limited by shares
B Public or private
C Small closely-held and dispersed-ownership companies
D The Company Law Review and law reform
1.9 Other business vehicles
A Other types of companies
B Other organisations and bodies
C Partnerships

2 CORPORATE ENTITY, LIMITED LIABILITY AND
INCORPORATION
2.1 Corporate entity
A The ‘Salomon’ doctrine
B Piercing the corporate veil
C Corporate liability for torts and crimes
2.2 Limited liability
A The meaning of limited liability
B The continuing debate about the desirability of limited liability
C Fraudulent trading and wrongful trading
v

1
3
3
4

8
9
10
11
11
11
13
14
15
15
15
16
17
18
18
20
20
23
23
23
24
28
31
31
31
33


Contents

2.3
2.4

2.5

Groups of companies
Incorporation
A Formal requirements
B Certificate of incorporation
C Publicity and the continuing role of the Registrar
D Promoters and pre-incorporation contracts
E Right of establishment
Company Law Review and law reform

37
39
39
42
43
44
46
46

3 LEGAL THEORY AND COMPANY LAW
3.1 The role of theory in company law
3.2 The nature and origins of the corporation
A The theories
B Rationale and application of the theories
3.3 Managerialism
3.4 Corporate governance

A Alignment
B The Cadbury Report and self-regulation
C Global convergence in corporate governance
3.5 Stakeholder company law
A Social responsibility
B Industrial democracy
C Stakeholder company law
D The Company Law Review and stakeholders
3.6 Law and economics
A Efficiency as a moral value
B The theory of the firm
3.7 Future issues

47
47
48
48
49
50
53
53
54
55
58
58
60
61
64
66
66

67
75

4 CURRENT REFORM MECHANISMS
4.1 Modern company law
4.2 The agencies of company law reform
A Department of Trade and Industry
B The Law Commission
C City and institutional input
D Academics
E European Commission
4.3 The 1998 Review
A Structure
B Guiding principles
C Swift progress
D The Final Report and subsequent developments
E Treatment in this book

77
77
77
77
80
80
81
81
81
81
82
82

83
84

PART II THE CONSTITUTION OF THE COMPANY
5 ENTRENCHMENT OF RIGHTS
5.1 Entrenchment of expectation versus flexibility
vi

85
87
87


Contents

5.2
5.3
5.4
5.5

5.6

Memorandum of association
Articles of association
Shareholder agreements
Changing the constitution and reconstruction
A Introduction
B Contract
C Alteration of articles
D Alteration of the memorandum

E Variation of class rights
F Compromises and arrangements under s. 425
G Other methods of reconstruction
Company Law Review and law reform

6 ORGANISATION OF FUNCTIONS AND CORPORATE POWERS
6.1 Introduction
6.2 The institutions of the company: the board and the
shareholders
6.3 The ultra vires doctrine
A Introduction
B Reform of the rule – an overview
C Underlying complications – objects and powers
D Shareholder intervention
E The current legislation – background matters
F Core provisions of the legislation
G Ratification
H Pulling it together
I An alternative approach
6.4 Company Law Review and law reform
7 RELATIONS WITH THIRD PARTIES: AGENCY AND
CONSTITUTIONAL LIMITATIONS
7.1 Contractual relations with third parties
7.2 Agency
7.3 The Turquand doctrine
7.4 The ‘relationship’ between Turquand and agency
7.5 Sections 35A and 35B
7.6 Company Law Review and law reform
PART III CORPORATE GOVERNANCE
8 THE GOVERNANCE PROBLEM AND THE MECHANISMS OF

MEETINGS
8.1 Alignment of managerial and shareholder interests
8.2 The role and functioning of the board of directors
A Directors as managers and ‘alter ego’
B Appointment and retirement of directors
vii

87
88
94
97
97
98
98
100
101
106
110
111
112
112
112
114
114
115
116
121
121
123
127

127
129
130
131
131
131
134
135
138
142
143
145
145
146
146
147


Contents

8.3

8.4
8.5
8.6

C Proceedings at directors’ meetings
D Remuneration of directors
The role and functioning of the shareholders in general
meeting

A The general meeting as the residual authority of the
company
B Resolutions at meetings
C The shareholders’ general meetings
D Convening of meetings and notice
E Shareholder independence – meetings and resolutions
F Procedure at meetings
Problems with the meeting concept
Meetings in small closely-held companies
Company Law Review and law reform

9 DUTIES OF DIRECTORS
9.1 Introduction
9.2 Common law duties of care and skill
9.3 Fiduciary duties
A The scope of the duty of good faith
B The no-conflicts rule
C Duty in respect of employees
9.4 Relief for directors
A Ought to be excused
B Exemption and insurance
9.5 Duty not to commit an unfair prejudice
9.6 Company Law Review and law reform
10 OTHER LEGAL CONSTRAINTS ON DIRECTORS’ POWERS
10.1 Constraints on directors’ powers
10.2 Statutory controls affecting directors
A Introduction
B Part X enforcement of fair dealing
C Controls over issue of shares
D Statutory provisions in terrorem

10.3 Monitoring of directors
A Introduction
B The policy of disclosure of the financial affairs of the
company
C Accounts and reports
D Publicity
E Non-statutory reports
F The role of the auditors
G Company secretary
H Government and other agencies
10.4 Conclusions
10.5 Company Law Review and law reform
viii

148
149
151
151
152
152
153
154
155
157
158
159
160
160
161
164

164
166
176
176
176
176
177
178
179
179
179
179
179
181
182
184
184
185
185
188
188
189
190
191
192
193


Contents

11 ROLE OF SELF-REGULATION
11.1 Reliance on self-regulation
11.2 Techniques of Cadbury
A Different approaches
B Structural and functional alterations
C Assumptions of responsibility
D Enhanced quality of disclosure
11.3 The Greenbury Report
11.4 The Hampel Report: evolution of the Combined Code 1998
11.5 The Higgs Review and the Combined Code 2003
11.6 The Combined Code 2003
A Listing Rules compliance statements
B Excerpts and summary of the main provisions
11.7 The ‘profession’ of director?
11.8 Conclusions
11.9 Company Law Review and law reform

194
194
196
196
196
197
197
198
198
199
201
201
202

209
210
210

12 SHAREHOLDER LITIGATION: COMMON LAW
12.1 Introduction: shareholder litigation generally
12.2 The doctrine of Foss v Harbottle
12.3 The principle of majority rule
12.4 The ‘exceptions’ to Foss v Harbottle
12.5 Meaning of ‘fraud on a minority’
12.6 The striking out of derivative actions
A Introduction
B Types of action and costs
C Striking out derivative actions
12.7 The Breckland problem
12.8 Company Law Review and law reform
A The work of the Law Commission
B Company Law Review and law reform

212
212
213
214
215
217
219
219
219
221
226

228
228
229

13 SHAREHOLDER LITIGATION: STATUTE
13.1 Winding up
13.2 Unfair prejudice
A The alternative remedy failure
B Unfair prejudice

231
231
232
232
233

PART IV CORPORATE FINANCE LAW

251

14 TECHNIQUES OF CORPORATE FINANCE
14.1 Some basic concepts of corporate finance
A Assets and capital
B The aims of the company
C Cash flows and capital raising
14.2 Financing the company
A Initial finance

253
253

253
254
254
255
255

ix


Contents

14.3

14.4
14.5

B Venture capital financing
C Public offerings of securities
The law relating to shares
A Definitions of share capital
B Increase and alterations of capital
C Authority to issue share capital
D Preferential subscription rights
E Nature of shares and membership
F Classes and types of shares
G Transfer of and transactions in shares
The legal nature of debentures (and bonds)
Company Law Review and law reform

256

257
263
263
265
266
266
267
268
271
275
275

15 RAISING AND MAINTENANCE OF CAPITAL
15.1 Introduction
15.2 The raising of capital – discounts and premiums
A Introduction
B Discounts
C Premiums
15.3 The maintenance of capital
A The meaning of the doctrine
B Reduction of capital
C Company purchase of own shares
D Dividends and distributions
15.4 Company Law Review and law reform

276
276
276
276
276

278
280
280
282
286
290
292

16 FINANCIAL ASSISTANCE FOR THE ACQUISITION OF
SHARES
16.1 Background to the present law
16.2 The modern scope of the prohibitions
16.3 Meaning of financial assistance
16.4 Principal/larger purpose exceptions
16.5 Private company exception
16.6 Other exceptions
16.7 Civil consequences of breach
16.8 Company Law Review and law reform

294
294
296
299
299
303
304
305
308

PART V SECURITIES REGULATION

311

17 POLICY AND THEORY IN SECURITIES REGULATION/CAPITAL
MARKETS LAW
17.1 The relationship between traditional company law and
securities regulation
17.2 The birth of securities regulation
17.3 The SEC
17.4 The Financial Services Authority
A The self-regulation era – the SIB
x

313
313
315
316
318
318


Contents

17.5

B Statutory securities regulation: accountability issues
Legal theory in securities regulation
A Aims of securities regulation
B Techniques of securities regulation
C The statutory objectives and the FSA’s duties

D IOSCO and global convergence
E Financial market integration in the EU

321
323
323
326
327
329
330

18 THE REGULATORY MACHINERY OF THE FINANCIAL
SERVICES AND MARKETS ACT 2000
18.1 Introduction and assumptions
18.2 Scope of the Act
A The general prohibition
B Regulated activities
C Examples of prescribed ‘activities’ and ‘investments’
D Territorial scope of the general prohibition
E The financial promotion regime
18.3 Authorisation and exemption
A Methods of authorisation
B Part IV permissions
C The Register
18.4 Exempt persons and exemption of appointed representatives
18.5 Conduct of business
A Textures of regulation
B The FSA Handbook of Rules and Guidance
C The FSA Principles for Businesses
D Ancillary regimes

18.6 Collective investment schemes
A Background
B The basic regulatory position under the FSMA 2000
C The marketing of collective investment schemes: restricted
D Authorised unit trust schemes
E Open-ended investment companies
F Overseas collective investment schemes
18.7 Enforcement
A ‘Policing the perimeter’
B Disciplinary measures
C Restitution, private actions for damages and insolvency
18.8 Investor compensation
18.9 Financial ombudsman service
18.10 Regulation of investment exchanges and clearing houses
18.11 Final matters

338
338
338
338
339
341
341
342
343
343
344
345
345
346

346
347
348
349
350
350
353
354
354
354
355
355
355
356
357
358
359
359
360

19 THE
19.1
19.2
19.3

361
361
361
362

REGULATION OF PUBLIC OFFERINGS OF SHARES
Migration into capital markets law
Before the EC Directives
The Listing Directives and the Prospectus Directive
xi


Contents

19.4

19.5

19.6

19.7
19.8

UK implementation
A The ‘competent authority’
B Prospectuses and listing particulars
Listed securities
A Introduction
B Background conditions
C Methods of issue
D Application procedures
E Contents of the prospectus
F Continuing obligations
G Other provisions
Unlisted securities

A The Alternative Investment Market (AIM)
B Prospectuses
The new Prospectus Directive and the FSA’s Review of the
Listing Regime
Remedies for investors

20 THE REGULATION OF INSIDER DEALING AND MARKET
ABUSE
20.1 Regulation of market conduct
20.2 Insider dealing and market egalitarianism
20.3 Development of regulation against insider dealing
A The cradle: SEC r. 10b-5
B UK legislation
20.4 Enforcement
20.5 UK regulation against market abuse
A The criminal law background
B Civil penalties for market abuse
20.6 The new EC Market Abuse Directive
REGULATION OF TAKEOVERS
Takeover battles
Disciplining management – the market for corporate control
Goals of takeover regulation
A The struggle for a Europe-wide regulatory policy
B The ideas in the new Directive
21.4 The UK system
A The Takeover Panel and self-regulation
B The operation of the City Code
C Other provisions applying to takeovers
D Defences
21.5 UK implementation of the Directive

21.6 The future in Europe under the Directive

363
363
364
365
365
366
367
367
368
369
369
370
370
370
371
372
374
374
374
375
375
377
382
384
384
384
386

21 THE
21.1
21.2
21.3

389
389
390
390
390
392
393
393
395
397
398
399
400

PART VI INSOLVENCY AND LIQUIDATION

401

22 INSOLVENCY AND LIQUIDATION PROCEDURES

403

xii

Contents

22.1
22.2

22.3

22.4

The development of corporate insolvency law
Pre-insolvency remedies
A Corporate rescue
B Administration
C Administrative receivers
D Company voluntary arrangement or other reconstruction
Types of winding up and grounds
A Voluntary winding up
B Winding up by the court
C Procedure and scope
Effects of winding up, purpose and procedure
A Immediate effects of winding up
B Aims and purpose of liquidation
C Procedure
D Misconduct, malpractice and adjustment of pre-liquidation
(or pre-administration) transactions

403
405
405
405

406
406
408
408
408
409
410
410
411
411
415

23 DISQUALIFICATION OF DIRECTORS
23.1 Background
23.2 The disqualification order
23.3 Grounds – unfitness and insolvency
A The s. 6 ground
B Unfitness
23.4 Other grounds
A Disqualification after investigation
B Disqualification on conviction of an indictable offence
C Disqualification for persistent breaches of the companies
legislation
D Disqualification for fraud in a winding up
E Disqualification on summary conviction
F Disqualification for fraudulent or wrongful trading
23.5 Human rights challenges
23.6 Epilogue

417

417
417
419
419
420
425
425
425
425
426
426
426
426
427

Index

429

Supporting resources
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representative or visit www.pearsoned.co.uk/pettet

xiii

PREFACE TO THE FIRST EDITION

In writing this book I have three aims. The first is to move the subject of company
law closer to what is usually called securities regulation (or capital markets law). I
have become ever more convinced in recent years that one cannot understand
company law from a practical or theoretical angle without a clear perception of the
principles and aims of securities regulation. As an academic and practical subject,
company law needs to include securities regulation, and I have tried to demonstrate
that in this work.
My second purpose is to provide a lively and thought-provoking analysis of the
main legal rules of company law. Readers will find that I have departed somewhat
from the list of topics often contained in company law texts, and so some areas have
a much lower profile in this book than they have received elsewhere. It has also been
necessary to vary the depth of coverage in order for the book to remain short
enough for it to claim to be a student textbook. On the other hand, I have given
special attention to areas which I have seen students struggle with over the years,
and in some chapters I have picked on the facts of seminal cases, or constructed
examples, which have then been used to illustrate at length the ideas which I have
wished to convey. As far as I am able, and where relevant, I have tried to present
the rules in the social and practical context in which they operate, both as a means
of making the subject of more interest and to enhance understanding.
My third aim is to give an account of, and assessment of, the important theoretical or jurisprudential issues which are current in this field, with a view to enabling
the reader to develop views on the appropriate direction of future reforms. In this
regard, it is an exciting time to be considering company law reform, because the
DTI’s Company Law Review is currently questioning the rationale of many areas,
and because a substantially new system of securities regulation is coming into being
as a result of the passing of the Financial Services and Markets Act 2000. Also,
national and international scholarship on fundamental theoretical issues has continued unabated into the new Millennium, spurred both by scholarly interest and
by the competitive pressures between different systems of company law created by
the global market for capital.

This book is arranged in six Parts: Foundation and Theory, The Constitution of
the Company, Corporate Governance, Corporate Finance Law, Securities
Regulation, Insolvency and Liquidation. An explanation of the contents of these
Parts and the reasons for organising the book in this way are set out in Chapter 1.
It has of course been necessary to draw a line under the inclusion of material, and
I have endeavoured to present the law and developments as they stand at 1 August
2000. With respect to the Financial Services and Markets Act 2000, the account
assumes that the Act is in force, which is very likely to be the case by the time this
book is published. As regards my very occasional references to the secondary legislation in that area, I have written on the basis of the draft orders and made this clear
in the footnotes, since the finalised versions are unlikely to be available before about
xv


Preface to the first edition

autumn 2001. This book has its own companion website and the reader will find
on it material which supports the book: />I wish to thank Professor Roger Rideout and the other editors, for first encouraging me to write a text on company law, so many years ago, and Pearson
Education Ltd for their patience in waiting for it; also Pat Bond, of Pearson
Education, who has been a pleasure to work with and a source of helpful advice.
Credit is also due to Pearson Education’s efficient production team, in particular
Anita Atkinson, Kathryn Swift and Sarah Phillipson. I owe much to a generation of
students for their enthusiastic criticism and probing of some of my ideas, and of
course the debt of any author to past and present scholars and lawyers in the field
is immense. In this regard I wish to record special thanks to Guido Ferrarini, Jim
Fishman, David Sugarman, Jim Wickenden, and others, who have read and commented on some of the material in draft form. Needless to say, the responsibility for
the views expressed here and for errors and omissions remains mine, and mine
alone.
This book is dedicated to my wife, Corry, and to my children, Emily, Roland and
Florence, in grateful recognition of their loving support and encouragement in the
years I was writing, particularly during that lost summer of 2000.

Ben Pettet
Faculty of Laws
University College London
September 2000

xvi


PREFACE TO THE SECOND EDITION

It is almost four years to the day since I sent the text of the first edition of this book
to my publishers. In the fields covered in this work much has changed, and the text
reflects that. But perhaps the most significant change of all is the increasing influence of the European Union in the development of company law, and capital
markets law. In company law we now have the EC Commission’s Action Plan for
Company Law, a huge programme replacing the rather sedate progress of pre-existing company law harmonisation. In the capital markets field we have, in the five
years which have elapsed since the Financial Services Action Plan was published,
seen a stream of complex legislation which will take many years to implement and
which presents a tough challenge to the UK’s Financial Services Authority. We
have also seen the reform of the EC legislative process itself with the introduction
of the Lamfalussy procedures, and the formation of the Committee of European
Securities Regulators (CESR), events of enormous importance in the context of the
development of Pan-European securities regulation. Set against the backdrop of
enlargement of the EU to 25 Member States, these events have changed forever the
processes of law reform in this field.
Much of the new material in this edition is therefore concerned with the major
legislation which has now emerged, such as the Directive on Takeover Bids, the
Directive on Insider Dealing and Market Manipulation (Market Abuse), the
Directive on Markets in Financial Instruments, and the new Prospectus Directive.
In the UK we have seen significant legislative initiatives from our Department of
Trade and Industry, such as the Enterprise Act 2002, and the Companies (Audit,

Investigations and Community Enterprise) Act 2004. As ever there have been interesting developments in case law. At the time of writing, the DTI are preparing a
major Companies Bill which will be published in draft form for consultation before
it enters the legislative process.
Readers should be aware that where the text refers to human persons generally,
using the masculine gender, this is of course intended to equally make reference to
persons of female gender and vice versa.
I wish to record my gratitude to my editor Michelle Gallagher for her helpful
advice and for her patience in waiting for this new edition, also to the rest of the
efficient production team at Pearson.
Ben Pettet
Faculty of Laws
University College London
September 2004

xvii


ACKNOWLEDGEMENTS

We are grateful to the following for permission to reproduce copyright material:
Financial Services Authority for extracts from Combined Code on Corporate
Governance by the Financial Reporting Council 23rd July 2003, FSA Handbook of
Rules and Guidance, Principles for Business August 2004 and UK Implementation of the
EU Market Abuse Directive (Directive 2003/6/EC) June 2004; and HMSO for an
extract from Law Commission Report No 246.
In some instances we have been unable to trace the owners of copyright material
and we would appreciate any information that would enable us to do so.

xviii

TABLE OF CASES

ADT v BDO Binder Hamlyn [1996] BCC 808 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Abbey Leisure Ltd, Re [1990] BCC 60, CA . . . . . . . . . . . . . . . . . . . . . . . . 239, 240, 248
Aberdeen Railway v Blaikie [1854] 1 Macq 461, HL . . . . . . . . . . . . . . . . . . . . . 164, 175
Acatos & Hutcheson plc v Watson [1995] 1 BCLC 218 . . . . . . . . . . . . . . . . . . . . . . . 288
Adams v Cape Industries [1990] BCC 786 . . . . . . . . . . . . . . . . . . . . . . . . . 25, 26, 27, 38
Agip v Jackson [1990] Ch 265 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
Al Nakib Ltd v Longcroft [1990] BCC 517 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373
Alexander Ward Ltd v Samyang Navigation Co Ltd [1975] 2 All ER 424,
HL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
Allen v Gold Reefs of West Africa [1900] 1 Ch 656 . . . . . . . . . . . . . . . . . . . . . 95, 96, 98
Allen v Hyatt [1914] 30 TLR 444 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Alpine Investments BV v Minister van Financien Case C-384/93 [1995]
ECR I-1141 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341
Aluminium Industrie Vaassen BV v Romalpa [1976] 2 All ER 552 . . . . . . . . . . . . . . . 413
Ammonia Soda Co v Chamberlain [1918] 1 Ch 266 . . . . . . . . . . . . . . . . . . . . . . . . . 291
Andrews v Gas Meter Co [1897] 1 Ch 361 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
Andrews v Mockford [1896] 1 QB 372 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373
Anglo Overseas Agencies v Green [1961] 1 QB 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Arab Bank plc v Mercantile Holdings Ltd [1993] BCC 816 . . . . . . . . . . . . . . . . 297, 298
Armagas v Mundogas [1986] 2 All ER 385, HL . . . . . . . . . . . . . . . . . 132, 133, 134, 137
Armour Hick Northern Ltd v Whitehouse [1980] 1 WLR 1520 . . . . . . . . . . . . . . . . . 296
Ashbury Railway Carriage and Iron Company v Riche (1875)
LR 7 HL 653 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114, 120, 127
Astec (BSR) plc, Re [1999] BCC 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241, 247
Atlas Wright (Europe) Ltd v Wright [1999] BCC 163 . . . . . . . . . . . . . . . . . . . . . . . . 158
Attorney General v Great Eastern Railway (1880) 5 App Cas 473 . . . . . . . . . . . . . . . 116
Attorney General for Hong Kong v Reid [1994] 1 AC 324 . . . . . . . . . . . . . . . . . . . . . 169

Attorney General of Tuvalu v Philatelic Ltd [1990] BCC 30 . . . . . . . . . . . . . . . . 29, 147
Attorney General’s Reference (No 2 of 1982) [1984] 2 All ER 216 . . . . . . . . . . . . . . 165
Automatic Self-Cleansing Filter Syndicate Co Ltd v Cuninghame [1906]
2 Ch 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
Aveling Barford v Perion (1989) 5 BCC 677 . . . . . . . . . . . . . . . . . . . . . . . . 119, 165, 292
BSB Holdings (No 2), Re [1996] 1 BCLC 155 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
Baden v Société Generale [1992] 4 All ER 161 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
Bahia and San Francisco Railway Co, Re (1868) LR 3 QB 584 . . . . . . . . . . . . . . . . . 268
Bailey Hay & Co, Re [1971] 3 All ER 693 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Bairstow v Queens Moat Houses Plc [2002] BCC 91; [2001] 2 BCLC 531 . . . . 176, 292
Balkis Consolidated Ltd v Tomkinson [1893] AC 396 . . . . . . . . . . . . . . . . . . . . . . . . 268
Bamford v Bamford [1970] Ch 212 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218, 229
Bank of Scotland, Governor and Company of, Petitioners [1989] BCLC 700 . . . . . . . 323
Bannatyne v Direct Spanish Telegraph Ltd (1886) 34 Ch D 287 . . . . . . . . . . . . 253, 285
Barclays Bank plc v British & Commonwealth Holdings plc [1996] BCLC 38, CA . . 299

xix


Table of cases
Barnes v Addy (1874) 9 Ch App 244 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
Barrett v Duckett [1993] BCC 778 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218, 229
Barron v Potter [1914] 1 Ch 895 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113, 151
Bath Glass, Re (1988) 4 BCC 130 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422
Beattie v E Beattie Ltd [1938] 1 Ch 708 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Bell v Lever Bros [1932] AC 161 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Bell Bros, Re (1891) 65 LT 245 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
Bell Houses v City Wall Properties Ltd [1966] 2 QB 656 . . . . . . . . . . . . . . . . . . . . . . 115
Belmont Finance Corporation Ltd v Williams Furniture [1979] Ch 250 . . . . . . . . . . . 307
Belmont Finance Corporation Ltd v Williams Furniture Ltd

(No 2) [1980] 1 All ER 393 . . . . . . . . . . . . . . . . . . . . . . . . . . . 295, 296, 300, 301, 306
Bhullar Bros Ltd, Re [2003] BCC 711, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Birch v Cropper (1889) 14 AC 525, HL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
Bird Precision Bellows Ltd [1986] Ch 658, CA; [1984] Ch 419 . . . . . . . . . . . . . . . . . 237
Blackspur Group plc, Re [1998] BCC 11, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424
Blue Arrow plc, Re [1987] BCLC 585 . . . . . . . . . . . . . . . . . . . . . . . . . 97, 235, 247, 258
Blum v OCP Repartition SA [1988] BCLC 170, CA . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Boardman v Phipps [1967] 2 AC 46; [1966] 3 All ER 721 . . . . . . . . . . . . . 168, 169, 171
Bolton Engineering v Graham [1957] 1 QB 159 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Borland’s Trustee v Steel Bros & Co Ltd [1901] 1 Ch 279 . . . . . . . . . . . . . . 90, 267, 273
Boston Deep Sea Fishing Co v Ansell (1888) 39 Ch D 399 . . . . . . . . . . . . . . . . . . . . 165
Boulting v Association of Cinematograph, Television and Allied Technicians
[1963] 2 QB 606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173, 174
Bovey Hotel Ventures Ltd, Re unreported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
Brady v Brady [1988] 2 All ER 617; BCLC 579, HL; reversing [1988] BCLC 20 . . . 300,
302, 305, 306, 309
Brian D Pierson (Contractors) Ltd , Re [1999] BCC 26 . . . . . . . . . . . . . . . . 34, 187, 426
Braymist Ltd v Wise Finance Co Ltd [2002] BCC 514 . . . . . . . . . . . . . . . . . . . . . . . . 45
Breckland Group Ltd v London & Suffolk Properties Ltd (1988) 4
BCC 542 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113, 226, 227
British and American Trustee Corporation v Couper [1894] AC 399 . . . . . . . . . . . . . 284
Brown v British Abrasive Wheel Ltd [1919] 1 Ch 290 . . . . . . . . . . . . . . . . . . . . . . . . . 99
Brownlow v GH Marshall Ltd [2001] BCC 152 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Burland v Earle [1902] AC 83, PC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213, 215, 229
Bushell v Faith [1970] AC 1099 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Bute’s, Marquis of, Case [1892] 2 Ch 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
CMS Dolphin Ltd v Simonet [2002] BCC 600 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Cady, Roberts & Co 40 SEC 907 (1961) . . . . . . . . . . . . . . . . . . . . . . 318, 375, 376, 377
Campbell v Paddington Corporation [1911] 1 KB 689 . . . . . . . . . . . . . . . . . . . . . . . . . 29
Caparo plc v Dickman [1990] 2 AC 605 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

Cape Breton Co, Re (1885) 29 Ch D 795 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Cardiff Savings Bank, Re [1892] 2 Ch 100 . . . . . . . . . . . . . . . . . . . . . . . . . 161, 162, 163
Carecraft Construction Ltd, Re [1993] BCC 336 . . . . . . . . . . . . . . . . . . . . 423, 424, 427
Carlton v Halestrap (1988) 4 BCC 538 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Carney v Herbert [1985] AC 301 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306
Carrington Viyella plc, Re (1983) 1 BCC 98,951 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245

xx


Table of cases
Castiglione’s Will Trusts, Re [1958] Ch 549 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Centros Ltd v Erhvervsog Selskabsstyrelsen Case C-212/97 [1999] BCC 983 . . . . . . . . 46
Charterbridge Corp v Lloyd’s Bank [1970] Ch 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Charterhouse Investment Trust Ltd v Tempest Diesels Ltd [1986] BCLC 1 . . . . . . . 299
Chase Manhattan Equities Ltd v Goodman [1991] BCC 308 . . . . . . . . . . . . . . . . . . . 383
Chaston v SWP Group plc [2003] 1 BCLC 675, CA . . . . . . . . . . . . . . . . . . . . . . . . . 299
Chatterley-Whitfield Collieries Ltd [1949] AC 512, HL; [1948] 3 All ER 593,
CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283, 284
Chiarella v US 445 US 222 (1980) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376, 377
Choppington Collieries Ltd v Johnson [1944] 1 All ER 762 . . . . . . . . . . . . . . . . . . . . 154
Churchill Hotel Ltd, Re (1998) 4 BCC 112 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418
City Equitable Ltd, Re [1925] Ch 407 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
City Property Trust Ltd, Petitioners 1951 SLT 371 . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Clark v Cutland [2003] EWCA Civ 810; [2004] 1 WLR 783; [2003] 4 All
ER 733 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
Clemens v Clemens [1976] 2 All ER 268 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Coalport China, Re [1895] 2 Ch 404 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
Colin Gwyer & Associates Ltd v London Wharf (Limehouse) Ltd [2003]
BCC 885 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Company a, Re (No 002567 of 1982) [1983] 2 All ER 854; (1983) 1
BCC 98931 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232, 235, 238, 248
Company a, Re (No 004475 of 1982) [1983] Ch 178 . . . . . . . . . . . . . . . . . . . . . . . . . 235
Company a, Re (No 002612 of 1984) (1984) 1 BCC 92; (1984) 1
BCC 99,262 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104, 181, 243
Company a, Re (No 007623 of 1984) (1986) 2 BCC 99,191 . . . 104, 181, 238, 239, 243
Company a, Re (1985) 1 BCC 99,421 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Company a, Re (No 005287 of 1985) (1985) 1 BCC 99,586 . . . . . . . . . . . . . . . . . . . 245
Company a, Re (No 00477 of 1986) [1986] 2 BCC 99,171 . . . . . . . . . . . . . . . . . 93, 235
Company a, Re (No 004377 of 1986) (1986) 2 BCC 99,520 . . . . . . . . . . . . . . . . . . . 238
Company a, Re (No 008699 of 1985) (1986) 2 BCC 99,024 . . . . . . . . . . . . . . . 235, 398
Company a, Re (No 003843 of 1986) [1987] BCLC 562 . . . . . . . . . . . . . . . . . . . . . . 248
Company a, Re (No 001363 of 1988) (1989) 5 BCC 18 . . . . . . . . . . . . . . . . . . . . . . . 248
Company a, Re (No 005134 of 1986) [1989] BCLC 383 . . . . . . . . . . . . . . 104, 181, 243
Company a, Re (No 00789 of 1987) [1991] BCC 44; (1989) 5 BCC 792 . . . . . . 237, 243
Company (No.004502 of 1988) ex p Johnson, Re [1991] BCC 234 . . . . . . . . . . . . . . 247
Company a, Re (No 006834 of 1988) (1989) 5 BCC 218 . . . . . . . . . . . . . . . . . . 237, 238
Company a, Re (No 00330 of 1991) ex p Holden [1991] BCC 241 . . . . . . . . . . 239, 240
Company a, Re (No 00709 of 1992) 1999 see O’Neil v Phillips
Company a, Re (No 00836 of 1995) [1996] BCC 432 . . . . . . . . . . . . . . . . . . . . . . . . 239
Continental Assurance Co of London plc, Re [1996] BCC 888 . . . . . . . . . . . . . . . . . 419
Cook v Deeks [1916] 1 AC 554, PC . . . . . . . . . . . . . . . . . . . . . . . . . . 165, 167, 216, 218
Copal Varnish, Re [1917] 2 Ch 349 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
Copeland Ltd, Re [1997] BCC 294, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237, 240
Cotman v Brougham [1918] AC 514 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Coulon Sanderson and Ward Ltd v Ward (1986) 2 BCC 99,207, CA . . . . . . . . . . . . 248
Country Farms Inns Ltd, Re [1997] BCC 801 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422

xxi

Table of cases
Creasey v Breachwood Motors Ltd [1992] BCC 638 . . . . . . . . . . . . . . . . . . . . . . . 25, 26
Criterion Properties plc v Stratford UK Properties LLC [2004] BCC 570,
HL; [2003] BCC 50, CA; [2002] 2 BCLC 151, ChD . . . . . . . . . . . . . . . 119, 121, 398
Cumana Ltd, Re [1986] BCLC 430, CA . . . . . . . . . . . . . . . . . . . . . . . 104, 151, 181, 237
Cumbrian Newspapers Ltd v Cumberland & Westmoreland Printing Ltd [1987]
Ch 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102, 109
DC, HS and AD v United Kingdom [2000] BCC 710 . . . . . . . . . . . . . . . . . . . . . . . . 427
DHN Ltd v Tower Hamlets LBC [1976] 1 WLR 852 . . . . . . . . . . . . . . . . . . . . . . . . . 25
DPP v Kent and Sussex Contractors Ltd [1944] KB 146 . . . . . . . . . . . . . . . . . . . . . . . 30
DR Chemicals Ltd (1989) 5 BCC 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104, 181
Dafen Tinplate Co Ltd v Llanelly Steel Co Ltd [1920] 2 Ch 124 . . . . . . . . . . . . . . . . . 99
Daniels v Daniels [1978] Ch 406 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Dartmouth College, Trustees of v Woodward (17 US) 4 Wheat 518 . . . . . . . . . . . . . . 48
David Payne & Co Ltd, Re [1904] 2 Ch 608 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117, 119
Dawson plc v Coats Patons (1988) 4 BCC 305 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398
Dawson Print Ltd, Re (1987) 3 BCC 322 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421
Day v Cook [2002] 2 BCLC 1, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
Denham, Re (1883) 25 Ch D 752 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Diamond v Oreamuno 24 NY 2d 494 (1969) NY Ct App . . . . . . . . . . . . . . . . . . . . . 382
Dimbula Valley (Ceylon) Tea Co v Laurie [1961] Ch 353 . . . . . . . . . . . . . . . . . . . . . 291
Dirks v SEC 463 US 646 (1983) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377
D’Jan Ltd, Re [1993] BCC 646 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Dorchester Finance Co Ltd v Stebbing [1989] BCLC 498 . . . . . 161, 162, 163, 164, 176
Dorman Long & Company Ltd, Re [1934] Ch 635 . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Douglas Construction Ltd, Re (1988) 4 BCC 553 . . . . . . . . . . . . . . . . . . . . . . . 420, 421
Downs Wine Bar Ltd, Re [1990] BCLC 839 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Drown v Gaumont Picture Corp Ltd [1937] Ch 402 . . . . . . . . . . . . . . . . . . . . . . . . . 278
Duomatic Ltd, Re [1969] 1 All ER 161 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

Dyster v Randall [1926] Ch 932 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
EDC v United Kingdom Application No 24433/94 [1998] BCC 370 . . . . . . . . . . . . . 427
Eagle Trust plc v SBC Ltd [1992] 4 All ER 488 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
East v Bennett [1911] 1 Ch 163 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Ebrahimi v Westbourne Galleries Ltd [1973] AC 360 . . . . . . . . . . . . . . . . . . . . . 231, 241
EC Commission v Italy (Re Restrictions on Foreign Securities Dealers)
Case C-101/94 [1996] 3 CMLR 754 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
Edwards v Halliwell [1950] WN 537; [1950] 2 All ER 1064 . . . . . . . . . . . . . . . . . . . . 215
EIS Services Ltd v Phipps [2003] BCC 931, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Electra Private Equity Partners v KPMG Peat Marwick [2000] BCC 368, CA . . . . . . 189
Eley v Positive Life Co (1876) 1 Ex D 88 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Elgindata (No.1), Re [1991] BCLC 959 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
Elliott v Planet Organic [2000] BCC 610 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
Equitable Life Assurance Society v Bowley [2003] BCC 829, QBD . . . . . . . . . . . . . . 163
Equiticorp plc, Re (1989) 5 BCC 599 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Erlanger v New Sombrero Phosphate Co (1878) 3 App Cas 1218 . . . . . . . . . . . . . 44, 45
Ernest v Nicholls (1857) 6 HLC 407 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Ernst and Ernst v Hochfelder 425 US 185 (1976) . . . . . . . . . . . . . . . . . . . . . . . . . . . 376

xxii


Table of cases
Erven Warnink BV v Townend ( J) & Sons (Hull) Ltd (No.1) [1979] AC 731, HL . . . 41
Estmanco (Kilner House) Ltd v GLC [1982] 1 All ER 437 . . . . . . . . . . . . . . . . 217, 222
Evans v Brunner Mond [1921] 1 Ch 359 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Evans v Spritebrand [1985] BCLC 105 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Exchange Banking Co (Flitcroft’s Case), Re (1882) L.R. 21 Ch. D. 519 . . . . . . . . . . 290
Exchange Securities Ltd, Re [1987] BCLC 425 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Fahey Developments Ltd, Re see Lowe v Fahey [1996] BCC 320

Fairline Shipping Corp v Adamson [1975] QB 180 . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Firbank’s Executors v Humphries (1886) 18 QBD 54 . . . . . . . . . . . . . . . . . . . . . . . . 136
Flap Envelope Ltd, in a, Re [2004] 1 BCLC 64 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306
Floating Dock, Re [1895] 1 Ch 691 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253, 283, 285
Foss v Harbottle (1843) 2 Hare 461 . . . . . . . . . . . . . 23, 90, 92, 121, 126, 127, 160, 162,
171, 177, 213, 214, 216, 217, 219, 220, 221, 222, 223, 224, 225, 226, 227, 229, 233,
245, 247
Foster v Foster [1916] 1 Ch 532 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Framlington Group plc v Anderson [1995] BCC 611 . . . . . . . . . . . . . . . . . . . . . . . . . 169
Francis v United Jersey Bank 87 NJ 15, 432 A2d 814 (1981) . . . . . . . . . . . . . . . . . . . 163
Freeman & Lockyer (a firm) v Buckhurst Park Properties (Mangal) Ltd
[1964] 2 QB 480 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133, 134, 138
Fulham LBC v Cabra Estates Ltd [1992] BCC 863 . . . . . . . . . . . . . . . . . . . . . . . 97, 165
Full Cup Ltd, Re [1995] BCC 682 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
GH Marshall Ltd, Re see Brownlow v GH Marshall Ltd [2001] BCC 152
Gaiman v Association for Mental Health [1971] Ch 317 . . . . . . . . . . . . . . . . . . . . . . 164
General Auction Estate v Smith [1891] 3 Ch 432 . . . . . . . . . . . . . . . . . . . . . . . . 116, 118
German Date Coffee Company, Re (1882) 20 Ch D 169 . . . . . . . . . . . . . . . . . . 115, 231
Gething v Kilner [1972] 1 All ER 1166 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398
Giles v Rhind [2001] 2 BCLC 582 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
Gilmour (Duncan) & Co, Re [1952] 2 All ER 871 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Great Wheal Polgooth Ltd (1883) 53 LJ Ch 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Greenhalgh v Arderne Cinemas Ltd [1945] 2 All ER 719 . . . . . . . . . . . . . . 103, 104, 105
Greenhalgh v Arderne Cinemas Ltd [1946] 1 All ER 512, CA . . . . . . . . . . 103, 104, 105
Greenhalgh v Arderne Cinemas Ltd [1950] 2 All ER 1120 . . . . . . . . . . . . . . . . . . 99, 103
Guidezone Ltd, Re [2000] 2 BCLC 321 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
Guiness v Saunders and Another [1990] BCC 205 . . . . . . . . . . . . . . . . . . . . . . . 149, 150
H Ltd, Re [1996] 2 All ER 391 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Halifax Building Society v Meridian Housing Association [1994] 2 BCLC 540 . . . . . 119
Halle v Trax BW Ltd [2000] BCC 1020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226

Halt Garage Ltd, Re [1982] 3 All ER 1016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Hannibal v Frost (1988) 4 BCC 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Harmer Ltd, Re [1959] 1 WLR 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
Hawk Insurance Ltd, Re [2001] 2 BCLC 480 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Heald v O’Connor [1971] 1 WLR 497 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465 . . . . . . . . . . . . . . . . . 29
Hellenic and General Trust, Re [1976] 1 WLR 123 . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Hely Hutchinson v Brayhead [1968] 1 QB 549 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Henderson v Merrett Syndicates [1995] 2 AC 145, HL . . . . . . . . . . . . . . . . . . . . . . . 189

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Table of cases
Henry Head & Co Ltd v Ropner Holdings Ltd [1952] 1 Ch 124 . . . . . . . . . . . . . . . . 278
Heron International Ltd v Lord Grade [1983] BCLC 244 . . . . . . . . . . . . . . . . . 161, 398
Hickman v Kent or Romney Marsh Sheepbreeders Association
[1915] 1 Ch 881 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90, 91, 92, 93, 94, 111
Hinchcliffe v Secretary of State for Trade and Industry [1999] BCC 226 . . . . . . . . . . 427
Hogg v Cramphorn [1967] Ch 254 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218, 229
Holders Investment Trust Ltd, Re [1971] 1 WLR 583 . . . . . . . . . . . . . . . . . . . . . . . . 285
Hope v International Society (1876) 4 Ch D 335 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Horsley & Weight, Re [1982] Ch 442 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115, 122
House of Fraser plc v ACGE Investments Ltd (1987) 3 BCC 201 . . . . . . . . . . . . . . . 284
Howard Smith v Ampol Petroleum [1974] AC 821 . . . . . . . . . . . . . . . . . . . . . . 165, 181
Hughes v Liverpool Victoria Friendly Society [1916] 2 KB 482 . . . . . . . . . . . . . . . . . 305
Hutton v West Cork Railway Company (1883) 23 Ch D 654 . . . . . . . . . . . . 59, 121, 215
Hydrodram Ltd, Re [1994] 2 BCLC 180 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34, 35
Industrial Development Consultants Ltd v Cooley [1972] 1 WLR 443 . . . . . . . . 168, 169
In Plus Group Ltd v Pyke [2002] 2 BCLC 201, CA . . . . . . . . . . . . . . . . . . . . . . . . . . 172

Introductions Ltd, Re [1970] Ch 199 . . . . . 116, 117, 118, 119, 120, 127, 128, 129, 412
Ipcon Fashions Ltd, Re (1989) 5 BCC 733 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420, 421
Island Export Finance Ltd v Umunna [1986] BCLC 460 . . . . . . . . . . . . . . . . . . 169, 172
Isle of Thanet Electricity Co, Re [1950] Ch 161 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
Item Software Ltd v Fassihi [2003] 2 BCLC 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
JE Cade & Son Ltd, Re [1991] BCC 360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
John v Rees [1970] Ch 345 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Johnson v Gore Wood & Co (No.1) [2001] BCLC 313, HL . . . . . . . . . . . . . . . . . . . 217
Jon Beauforte (London) Ltd, Re [1953] 2 Ch 131 . . . . . . . . . . . . . . . . . . . . . . . 117, 126
Jones v Lipman [1962] 1 WLR 832 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Karak Rubber Co Ltd v Burden (No 2) [1972] 1 WLR 602 . . . . . . . . . . . . . . . . . . . . 307
Kayford, Re [1975] 1 WLR 279 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413
Kaytech International plc, Re [1999] BCC 390, CA . . . . . . . . . . . . . . . . . . . . . . . . . . 418
Keech v Sandford (1726) 25 ER 223 . . . . . . . . . . . . . . . . . . . . . 166, 168, 170, 171, 174
Kenyon Swansea Ltd, Re (1987) 3 BCC 259; [1987] BCLC 514 . . . . . . . . 104, 181, 247
Kirby v Wilkins [1929] 2 Ch 444 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Kreditbank Cassel GMBH v Schenkers [1927] 1 KB 826 . . . . . . . . . . . . . . . . . . 133, 137
Kuwait Bank v National Mutual Life [1990] 3 All ER 404, PC . . . . . . . . . . . . . 173, 174
La Compagnie de Mayville v Whitley [1896] 1 Ch 788 . . . . . . . . . . . . . . . . . . . . . . . 148
Land Credit Company of Ireland, Re (1873) 8 Ch App 831 . . . . . . . . . . . . . . . . . . . . 272
Larvin v Phoenix Office Supplies Ltd [2003] 1 BCLC 76, CA . . . . . . . . . . . . . . . . . . 243
Lawlor v Gray Unreported CA, noted (1980) 130 New LJ 31 . . . . . . . . . . . . . . . . . . 306
Lee v Lee’s Air Farming [1961] AC 12, PC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Lee Behrens & Co Ltd, Re [1932] 2 Ch 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Lennard’s Carrying Company Ltd v Asiatic Petroleum Co Ltd [1915] AC 705 . . . . . . 28
Leyland Daf Ltd, Re [2004] BCC, HL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413
Liggett v Barclays Bank [1928] 1 KB 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135, 138
Little Olympian Each-Ways Ltd (No 3) [1995] 1 BCLC 636 . . . . . . . . . . . . . . . . . . . 244
Lloyd v Poperly [2000] BCC 338 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340
Loch v John Blackwood Ltd [1924] AC 783, PC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231

xxiv