IN RE YENIDJE TOBACCO CO LTD: CA 1916

IN RE YENIDJE TOBACCO CO LTD: CA 1916


IN RE YENIDJE TOBACCO CO LTD: CA 1916

Citation: [1916] 2 Ch 426, [1916-17] All ER 1050


Coram: Lord Cozens-Hardy MR
Facts: A company had been set up by two tobacco manufacturers, Mr Rothman and Mr Weinberg. The relationship between them had broken down to the extent that the two shareholders were not on speaking terms and that no business which deserved the name of business in the affairs of the company could be carried on. Even though the company was prosperous and making large profits, an application was now made for the company to be wound up.
Held: The company was not in a state that could have been contemplated at the time when the company had been formed and it should be terminated as soon as possible. Lord Cozens-Hardy MR referred to the grounds for winding up a partnership set out in Lord Lindley’s textbook on Partnership as including ‘Refusal to meet on matters of business, continued quarrelling, and such a state of animosity as precludes all reasonable hope of reconciliation and friendly cooperation’.
It was not necessary to show gross misconduct as a partner but only that the court must be satisfied that it is impossible for the partners to place that confidence in each other which each has a right to expect and that such impossibility has not been caused by the person seeking to take advantage of it.