This case was about liability for a share of the failed partnership of Douglas, Heron, and Company. The pursuers, a group of the company’s partners, alleged that the disputed share belonged to Archibald Cockburn of Cockpen, who was both a stockholder and a director of the company. Cockburn claimed that he had acquired the share on behalf of the company, as part of an effort to prop up its stock price. However, the partners argued that as a director, Cockburn did not have the power to make such a purchase, and that even if he did, that power was not exercised properly.
Cockburn v. Partners of Douglas, Heron & Co
