ABSTRACT
Nichol’s Case (1885) CA W had applied for shares in the company and had been sent a letter of allotment by the company calling on him to pay a sum due on allotment. The money was never paid and W’s name was never put on the company’s register of members. Three years later the directors of the company cancelled the allotment and then all of the company’s shares comprised in its nominal capital were issued to others. When the company subsequently went into liquidation, the liquidator sought to make W liable as a contributory.
