GENERAL AUCTION ESTATE AND MONETARY COMPANY
V.
SMITH

(1891) JELR 80300 (CA)    
Court of Appeal  ·  LN-e-LR/1981/16 (CA) ·  9 Jul 1891 ·  United Kingdom
CORAM
STIRLING, J
Core Terms Beta
company
articles of association
power
purpose
trading company
metropolitan saloon omnibus company
special resolution
business of the company
joint stock companies act
express authority
power of borrowing
conveyance of passengers
extraordinary general meeting of the company
general meeting
objects of the company
plaintiff company
shipping company
3rd clause of the memorandum of association
55th clause
approbation of the lords justices
borrowing money
business of shipowners
case of a trading company
commercial bills
direct authority
first place
general meeting of the shareholders
hamilton’s windsor ironworks
issue of debentures
limited company
lords justices
main judgment
management of a company
mortgage of their ships
patent file company
powers of the directors of the plaintiff company
present case
schedule of the said act
similar point
simple form
single sentence
species of business
such sum of money
table b
various questions
vice-chancellor
want of a further sum of money
words of the 33rd section

MAIN JUDGMENT

 STIRLING, J

Now, under these circumstances, various questions were raised before me. First of all, it was said that the Plaintiff company had no power to borrow at all; and to this it was answered that the company was a trading company, and that a power of borrowing was a necessary incident to the constitution of such a company. In my opinion, the company is a trading company. If there was nothing else, the fact that the objects of the company include the discounting of approved commercial bills, and the fact that the company did carry on that species of business, prove it to be such. The question then is, whether a trading company has power to borrow, there being no express authority for the purpose to be found either in the memorandum or articles of association.

Now, upon this there is authority. In the first place, in the case of Australian Auxiliary Steam Clipper Company v. Mounsey (6), the circumstances were very similar to the present. There the company was incorpora…

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