Reviewed case brief

Eley v Positive Government Security Life Assurance Co

(1876) 1 Ex D 88

The Court of Appeal held that a provision in the articles appointing a named person as the company's solicitor does not create an enforceable contract between that person and the company, because the articles only bind members in their capacity as members.

articles-of-associationoutsider-rightsstatutory-contractsolicitor
Court
Court of Appeal
Year
1876
Subjects
Company Law
Reviewed
2026-06-30

Rule established

The articles of association do not confer enforceable rights on outsiders or on members in a non-member capacity

Facts

    Issues

      Held

        Ratio decidendi

        How to use it in an exam

        Editorial source

        Exchequer Division Reports

        Educational summary only. Read the reported judgment or an authorised law report before relying on the case professionally.