Re Faris, Deceased; Goddard v Overend

• Jurisdiction: Ireland
• Judge: M. R.
• Judgment Date: 20 January 1911
• Court: Chancery Division (Ireland)
• Date: 20 January 1911

In re Faris, Deceased

Goddard

and

Overend.

M. R.

CASES

DETERMINED BY

THE CHANCERY DIVISION

OF

THE HIGH COURT OF JUSTICE IN IRELAND,

AND BY

THE IRISH LAND COMMISSION,

AND ON APPEAL THEREFROM IN

THE COURT OF APPEAL.

1911.

Will — Construction — Legacy — Mortgage — Charge — Company — Shares — Allotment of, by way of bonus — Accretion to subject — matter of legacy.

A testatrix bequeathed to A, B, and C, “my one hundred and seventy pounds, G. & Co. Ordinary Stock.” Between the date of the will and of her death, a bonus of one new share for each original share was distributed to the shareholders of G. & Co. and converted into stock. The result of this distri-bution was to reduce the stock in G. & Co. to half its original value, so that the holding of £340 stock, consisting of her original shares and of the bonus, of which the testatrix died possessed, was worth no more than her original holding of £170 stock would have been.

Held, that the £340 stock passed under the bequest of “my one hundred and seventy pounds stock.”

A testatrix made a bequest in the following terms:—“As to the charge affecting the D estate …. of which only £1000 is disposable under the terms of my marriage settlement, I direct that my executor shall hold it in trust” for certain persons in certain shares, which she thereby declared. Under her marriage settlement she had power to dispose of a sum of £1000, part of a charge of £1500.

Held, that interest due to The testatrix at her death upon the charge did not pass to the legatees under the terms of the bequest.

A Testatrix devised and bequeathed to G, E, And F, Her Two Mortgages For £1000 and £900 respectively, then affecting certain estates, for their own use absolutely in equal shares, share and share alike.

Held, that interest due to the testatrix under the two mortgages at her death passed with the principal to the legatees.

Originating Summons taken out by the executor of the deceased to determine (inter alia) the following questions arising on the construction of the will:—

(1) Whether in the events that have happened the legacy to Harrie Overend of a share of £170 Guinness & Co. Ordinary Stock and £500 Government Stock has lapsed, and, if not, who is entitled to same.

(2) Whether a sum of £340 Guinness & Co. Ordinary Stock to which the testatrix was entitled at the time of her death passes under the bequest of £170 Guinness & Co. Ordinary Stock.

(3) Whether the bequests of the mortgages for £1000 and £900 affecting the estates of Cecil B. Whyte and Petronella Whyte, and of the charge affecting the Donard estate, include any arrears of interest due in respect of the said mortgages or charge respectively at the death of the testatrix, and, if not, who are or who is now entitled to the said arrears?

The bequest referred to in questions (1) and (2) was as follows:—

“I give and bequeath to my nieces, Mary and Harrie Overend, and my nephew, John Overend, all of 35 Upper Baggot Street, Dublin, my one hundred and seventy pounds Guinness & Co. Ordinary Stock, and my five hundred pounds 2³/₄ per cent. Government Stock, for their own use absolutely, in equal shares, share and share alike.”

Harrie Overend predeceased the testatrix, dying in or about the month of June, 1909. At the date of the will the testatrix was the owner of £170 Ordinary Stock in Arthur Guinness, Son, & Co., Ltd. In September, 1908, the Company declared a bonus on their Ordinary Stock. The means by which this bonus was paid to the shareholders was by allotting to each Ordinary Stock-holder an additional amount of Stock equal to the amount of Stock already held by him or her. The amount of the bonus so allotted to the testatrix in the form of Ordinary Stock was £170, thus increasing her previous holding of £170 Ordinary Stock up to £340 Ordinary Stock, of which she was possessed at the time of her death. The nature of the transaction sufficiently appears from the circular sent out to the several stockholders on the occasion of the additional allotment. The circular sent to the testatrix was in the following terms:—

Registered Holding of Ordinary Stock on 18th of August, 1908.

£170

67, Lombard Street, London, E.C.,

14th September, 1908.

Sir or Madam.

Arthur Guinness, Son, & Company, Ltd.

By special resolution, confirmed at the Extraordinary General Meeting of the Company, held on the 31st day of August, the Capital of the Company was increased by the creation of 2,500,000 New Ordinary Shares of £1 each, and at such meeting it was resolved:—

“(1) That this General Meeting hereby sanctions the declaration and payment out of the Reserve Fund of a bonus, without deduction of income tax, at the rate of 100 per cent. on the £2,500,000 Ordinary Stock of the Company to the members, who on the 18th day of August, 1908, were registered as the holders of the Ordinary Stock; and (2) that the bonus declared by this meeting be paid by the distribution and allotment of the 2,500,000 New Ordinary Shares in the Capital of the Company, credited as fully paid up, ranking for dividend as from and after the 30th day of June, 1908, rateably and on equal footing with the said £2,500,000 Ordinary stock, and that a sum equal to the amount of such bonus be transferred from Reserve Fund to Capital Account, and be capitalized accordingly.

The 2,500,000 New Ordinary Shares of £1 each have by resolution of the Board been converted into Ordinary Stock, and a certificate of the New Ordinary Stock is accordingly enclosed in payment of the aforesaid bonus on the Ordinary Stock held by you on 18th August last.

A receipt is attached, which please sign, and return as early as convenient to the above address.

Yours faithfully.

Glyn, Mills, Currie, & Co.,

Registrars of the Company.

To Mrs. Mary J. Faris.

Account No. 15386.

Arthur Guinness, Son, &amp...