| Re Rica Gold Washing Co | |
| Court: | Court of Appeal |
| Date Decided: | 19 February 1879 |
| Citations: | (1879) 11 Ch D 36 |
| Judges: | Sir George Jessel MR Brett LJ Bramwell LJ |
| Opinions: | Sir George Jessel MR |
| Keywords: | Liquidation |
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.
A member of the company wished to petition to wind up the company, a gold mining operation in "Colombia". He held 75 fully paid up £1 shares.
Hall VC dismissed the petition, holding that his interest was not sufficient.
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.[1]
Brett LJ and Bramwell LJ concurred.