''Re Rica Gold Washing Co'' (1879) 11 Ch D 36 is a UK insolvency law case concerning the liquidation when a company is unable to repay its debts. It held that a shareholder, to having standing to bring a winding up petition must have a sufficient tangible interest in what is left over after winding up.

Facts

A member of the company wished to petition to wind up the company, a

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". He held 75 fully paid up £1 shares. Hall VC dismissed the petition, holding that his interest was not sufficient.

Judgment

Sir George Jessel MR said for a fully paid up shareholder, ‘it must be that after full payment of all the debts and liabilities of the company there will remain a surplus divisible among the shareholders of sufficient value to authorise him to present a petition.’ This shareholder, with 75 paid up £1 shares, did not have sufficient tangible interest. His judgment went as follows.(1879) 11 Ch D 36, 42-47. See also, L Sealy and S Worthington, ''Cases and Materials in Company Law'' (9th edn OUP 2010) 746 Brett LJ and Bramwell LJ concurred.

Notes

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References

*L Sealy and S Worthington, ''Cases and Materials in Company Law'' (9th edn OUP 2010) *R Goode, ''Principles of Corporate Insolvency Law'' (4th edn Sweet & Maxwell 2011) United Kingdom insolvency case law Court of Appeal (England and Wales) cases 1879 in British law 1879 in case law