ABSTRACT
Borland’s Trustee v Steel Bros & Co Ltd (1901) Mr Borland had 73 £100 shares in the defendant company. The company’s articles of association provided that on the occurrence of certain specified events, including the bankruptcy of a member, that member’s shares should be compulsorily transferable to specified persons upon payment of a fair price which was not to exceed par value. Mr Borland was declared bankrupt and his trustee in bankruptcy brought an action seeking a declaration that the compulsory transfer provision in the articles was void on the grounds that it was inconsistent with the concept of absolute ownership or void for offending perpetuity.
