Uganda Case Law

Kirkel v Adams (C.A. 24/1933.)

Kirkel v Adams (C.A. 24/1933.) [1937] EACA 26 (1 January 1937)

Court

East African Court of Appeal

Case number

C.A. 24/1933.

Judge

Horne J, Lucie-Smith Ag CJ (Kenya), Sheridan CJ

The Court of Appeal held that the liquidator failed to discharge the burden of proof required in misfeasance proceedings under section 235 of the Companies Ordinance. The balance-sheet value of assets is not a reliable measure for assessing liability; rather, the actual realizable value at the time of sale is determinative. The evidence presented by the liquidator, including expert opinions and balance-sheet figures, did not sufficiently establish that the assets could have been sold for more than the amount realized. The maxim 'Tantum bona valent, quantum vendi possunt' applies, meaning thin…

Source excerpt

• Director Liability
• Company Winding Up
• Misfeasance Proceedings
• Asset Valuation
• Burden Of Proof