Ratio Decidendi
A gift of shares may be treated as complete in equity where it would be unconscionable for the donor to recall the gift, even if the donor has not done everything in their power to transfer legal title.
Facts
Ada Crampton wished to give shares to her nephew Harold. She signed a transfer form which was given to her agent but never delivered to the company or Harold.
Judgment Summary
The Court of Appeal held the gift was effective. It would have been unconscionable for Ada to resile given her clear intention and Harold's reliance in becoming a director.
Key Quotes
"There is a benevolent construction given to share transfers where the donor has clearly shown an intention to make a gift and it would be unconscionable to recall it."
— Arden LJ
Subsequent Treatment
Controversial extension of Re Rose; criticised by some academics but remains binding.