CHARTERBRIDGE CORPORATION, LTD. v. LLOYDS BANK, LTD., AND POMEROY DEVELOPMENTS (CASTLEFORD), LTD.

[1969] 2 Lloyd's Rep. 24

CHANCERY DIVISION

Before Mr. Justice Pennycuick

Company - Memorandum of association - Objects clause-"To secure or guarantee by mortgages, charges or otherwise" own liabilities and those of associated companies -Company independent but one of large group - Overdraft of main company guaranteed and secured by charge on company's property - No separate consideration of interests of company as distinct from those of group-Sale of property- Validity of charge as against purchasers- Whether guarantee and charge ultra vires- Whether transaction outside scope of company's business-Whether intention to benefit company relevant-Whether in fact parties acting with view to benefit of company.