Turn on thread page Beta

Equity will not perfect imperfect gifts watch

    • Thread Starter
    Offline

    2
    ReputationRep:
    i am stuck in a question which states that sarah has 500 shares and she has promised daphne to transfer those shares to her .. sarah executes an instrument of transfer of shares in the form required by the company's articles and hands it over along with the share certificates to daphne

    before the transfer is registered the sarah dies

    jacob is appointed as the executor and he immediately cancels the transfer of shares

    what is the position of daphne now? was the gift perfected under the ReRose principle or because of jacob Daphne has lost the shares

    please helpp
    thank you
    Offline

    18
    ReputationRep:
    (Original post by tratcos_2)
    i am stuck in a question which states that sarah has 500 shares and she has promised daphne to transfer those shares to her .. sarah executes an instrument of transfer of shares in the form required by the company's articles and hands it over along with the share certificates to daphne

    before the transfer is registered the sarah dies

    jacob is appointed as the executor and he immediately cancels the transfer of shares

    what is the position of daphne now? was the gift perfected under the ReRose principle or because of jacob Daphne has lost the shares

    please helpp
    thank you
    I think that Re Rose applies here (and not strong v bird). Re rose essentially says that equity will perfect an imperfect gift when the donor has done everything they possibly could have done to make the gift valid. It seems that they Sarah has done everything she possibly could have done and so Daphne will have the interest in the shares.
    • Thread Starter
    Offline

    2
    ReputationRep:
    (Original post by beepbeeprichie)
    I think that Re Rose applies here (and not strong v bird). Re rose essentially says that equity will perfect an imperfect gift when the donor has done everything they possibly could have done to make the gift valid. It seems that they Sarah has done everything she possibly could have done and so Daphne will have the interest in the shares.
    but as soon as sarah dies jacob cancels the transfer what affect would that have ??
    Offline

    18
    ReputationRep:
    (Original post by tratcos_2)
    but as soon as sarah dies jacob cancels the transfer what affect would that have ??
    Well if the Re Rose principle applies (as i think it does) then there will be a valid gift and so Jacob cancelling the transfer will be too late.
    • Thread Starter
    Offline

    2
    ReputationRep:
    (Original post by beepbeeprichie)
    Well if the Re Rose principle applies (as i think it does) then there will be a valid gift and so Jacob cancelling the transfer will be too late.
    thanks alottttt got it !!
    Offline

    19
    ReputationRep:
    I'm not sure if Re Rose does apply. To effect a transfer of the legal title in shares, you need to give an executed stock transfer form to the company, not to the donee. Here, the forms have been given to Daphe and not the directors; therefore Sarah has not done everything she needs to do to effect a transfer.
    Offline

    15
    ReputationRep:
    (Original post by jacketpotato)
    I'm not sure if Re Rose does apply. To effect a transfer of the legal title in shares, you need to give an executed stock transfer form to the company, not to the donee. Here, the forms have been given to Daphe and not the directors; therefore Sarah has not done everything she needs to do to effect a transfer.
    I would agree with this. Daphne isn't an agent of Sarah's.

    You could then try it on with Pennington v Waine but you'd have to talk about the difficulties with the decision.
    Offline

    18
    ReputationRep:
    Ah I missed that. In which case Re Rose wouldn't apply.
    Offline

    0
    ReputationRep:
    Re Rose still applies, Formalities required for the transfer of shares is
    (1) complete stock transfer form
    (2) send stock transfer form and share certificates to transferee (Daphne)
    (3) Transferee then must send the documents to the new company to show new ownership so that they can be registered.

    Sarah has done enough to satisfy the 'every effort' test in Re rose - she has done everything necessary and put the shares beyond her recall.
    Offline

    1
    ReputationRep:
    Mary, a director in a private company, wanted to transfer 1,000 of her own shares in that private company to her daughter, Angelina, to make her a director of the company also. She completed a share transfer form accordingly and delivered it to the company. Angelina duly undertook her duties as one of the directors. Although the company had received the transfer document, it subsequently transpired that the then board of directors had omitted to formally register the transfer of the shares. However, Mary dies and Her will, which was valid, had been recently changed. Instead of leaving Angelina the whole of her estate, she had left everything to her friend, Christine. In the will Mary expressly stated, “In consideration of my daughter, Angelina’s, recent despicable behaviour towards me I have decided to leave her nothing.” Christine is now claiming the 1,000 shares in the private company.


    what would be the legal position of Christine and Anegline? And can you talk about the type of trust e..g implied and express trust?
 
 
 
Reply
Submit reply
Turn on thread page Beta
Updated: February 27, 2018
Poll
Do you think parents should charge rent?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.