Eley v Positive Life [1875] 1 Ex D 88

• Articles stated that Claimant was to be the solicitor of Positive Life. However he was not appointed so sued for breach of the articles.

• At time articles were created, Claimant was not a member. However by time Claimant brought action, Claimant was a member.

Held

• Claimant could not enforce the articles.

• This because outsiders to company cannot enforce rights purportedly granted to them under articles.

• Articles only have legal effect as between members.

• NB court did not look at all at whether fact that Claimant had subsequently become a member meant he had right to enforce articles…