Household Fire Insurance Co. v Grant (1879)

Company Law · Remedies of Debenture-holders

Facts.

Grant applied for shares. The company posted a letter of allotment, but it never reached him. The company later went into liquidation and sought the balance due on his shares.

Issue.

Was Grant a shareholder although the allotment letter was lost in the post?

Held.

Yes. Acceptance (allotment) was complete when the letter was posted; Grant became a shareholder and was liable for the unpaid amount.

Why it matters.

Applies contract law’s postal rule to share allotment — the moment of becoming a shareholder is fixed at posting, not receipt.

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