Scottish Court of Session Decisions

The Act of Sederunt of 15th July 1904, as to the finding of caution in judicial factories and the procedure therein, and as to the remuneration of factors, provides—Sec. 2( d)—“The Accountant shall in January yearly prepare and submit a list of approved guarantee companies for the consideration and approval of the Court.” Sec. 3—“The Accountant of Court shall allow as a charge against the factory estate (1) the premium paid by the factor where a company bond of caution has been accepted, or such part thereof as he deems proper, and (2) the expense of the necessary procedure in obtaining the approval of a bond of caution or the limitation of the amount, but the fact of such charge shall be taken into account by the Accountant of Court in fixing the factor's remuneration.” Sec. 5—“This Act shall not affect the procedure as to bonds of caution in bankruptcy and in the liquidation of public companies.”

On 11th June 1907James Maxtone Graham, the liquidator of James Donaldson & Company, Limited, presented a note to the Lord Justice-Clerk stating, inter alia, that the assets of the company amounted to £9000 or thereby, and praying his Lordship “to move the Court to restrict the caution to be found by the liquidator and to authorise a bond of caution by the Law Guarantee and Trust Society, Limited, to be accepted, and further to authorise the premium on the said bond of caution to be paid by the liquidator out of the estate of the said James Donaldson & Company, Limited, and further to direct that the expenses of this note should be expenses in the liquidation.”

The Law Guarantee and Trust Society, Limited, was one of the companies approved of for the year 1907 in terms of sec. 2 ( d) of the Act of Sederunt.

Counsel for the liquidator referred to M'Leod (Liquidator of Alexander Forrester, Limited), February 21, 1907, 44 S.L.R. 393.

The Court without giving opinions pronounced this interlocutor:—

“The Lords having considered the note for James Maxtone Graham, C.A., the liquidator appointed on the estates of James Donaldson & Company, Limited, and having heard counsel, fix £6000 as the amount for which caution shall be found by him, and authorise the Clerk to accept a bond for that amount by the Law Guarantee and Trust Society, Limited: Further authorise the liquidator to charge the premiums payable in respect of such bond against the liquidation, but declaring that such charge shall be taken into account at the fixing of his remuneration as liquidator: Also authorise the expenses of said note to be charged against the liquidation.”