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About: Re Nanwa Gold Mines Ltd     Goto   Sponge   NotDistinct   Permalink

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Re Nanwa Gold Mines Ltd [1955] 1 WLR 880 was a trust law decision relating to subscription monies for shares and what would subsequently come to be known as Quistclose trusts. The court held that where subscription monies had been paid over to enable the company to accomplish a specific purpose, if that purpose failed then the money was held on trust for the subscribers and did not form part of the assets of the company. Even though the decision was only a first-instance ex tempore decision, it has been repeatedly upheld, including by the House of Lords in Barclays Bank Ltd v Quistclose Investments Ltd [1968] UKHL 4