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 21st February 1907 John M. M'Leod, C.A., Glasgow, the liquidator of Alexander Forrester, Limited, boot manufacturers, Glasgow, presented a note stating that on 5th February 1907 their Lordships of the First Division had placed the winding up of the company under supervision and appointed him liquidator; that the assets amounted to £5995, 1s. 10d.; and that he was willing to take out a bond of caution with the National Guarantee and Suretyship Association for such sum as the Court might fix. The prayer of the note was “to restrict the caution to be found by the said John M. M'Leod, as liquidator foresaid, to a sum to be fixed by the Court, and to authorise a bond of caution of the National Guarantee and Suretyship Association for that amount 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 company; and further, to direct that the expenses of and in connection with this note shall be expenses in the liquidation …”

Counsel for the liquidator referred to secs. 2 ( d), 3, and 5 of the Act of Sederunt, 15th July 1904, as to the finding of caution in judicial factories, &c., and argued that while the case of a liquidator was not provided for therein, still the analogy between his office and that of a judicial factor rendered the provisions applicable. He further stated that the National Guarantee and Suretyship Association was one of the companies approved of in terms of sec. 2 ( d) of the Act of Sederunt.