Proposal to reduce the votes of preference shares, Business Law and Ethics

Proposal to reduce the votes of preference shares:

In making this approach the courts have nonetheless kept the door open for action to deal with discrimination against a class by indirect means.  In the Bristol Aeroplane Case it was said (as an obiter dictum) that if the ordinary shareholders had passed a resolution simply to double the votes attached to the ordinary shares this would have been a variation of the voting rights of preference shares (to which the safeguards described above would apply).

A class of shares may carry different rights in one respect (e.g. a preference dividend) but the same rights as other classes in other respects.  Because of the difference it ranks as a class to which the safeguards apply.  This is so even when the class right to be varied is shared with the other class.  Suppose, for example, the articles give one vote per share to both ordinary and preference shares.  A proposal to reduce the votes of preference shares to, say, 1 vote for 10 preference shares is a variation of a class right since it is enjoyed by that class (and also by the ordinary shareholders).

S.74(4) provides that the decision of the court on any application shall be final.  the company must deliver a certified copy of the court order to the registrar within thirty days after the making of the order.

Posted Date: 1/15/2013 3:11:36 AM | Location : United States







Related Discussions:- Proposal to reduce the votes of preference shares, Assignment Help, Ask Question on Proposal to reduce the votes of preference shares, Get Answer, Expert's Help, Proposal to reduce the votes of preference shares Discussions

Write discussion on Proposal to reduce the votes of preference shares
Your posts are moderated
Related Questions
District Magistrate's Court - Criminal Jurisdiction However Statute Law like as Miscellaneous Amendments Act 1983 amended the criminal jurisdiction of district magistrate's co

Method of Service: Article 131 provides that a notice may be given by the company to any member either personally or by sending it by post to him at his registered address or

Irene walked into a store carrying a bottle of soda she had purchased a few days earlier. While in the store, she opened the bottle of soda and was drinking it while she

Determine the policy process point of view Viewing from the policy process point of view, we find that while voting for legislature, the rational candidates and voters have inf

Types of Authority - Agency Law Further there are three types of authority namely like:; (a) Real or factual However this is the authority that in fact is given to the

Question 1: (a) "A tourist resort which does business in a single currency is not exposed to currency risk." Discuss (use example to support your answer). (b) Case: Hedging


REGULATIONS REGARDING EXPERIMENTS ON ANIMALS : You may be aware that experiments on animals are performed in the laboratories of educational and research institutions. You should k

Appointment of Directors: In the absence of other provisions in a company's articles, the directors of the company would be appointed in accordance with the following provisio

Determine the reasons of policy perspective The term system is needed for two reasons: i) It encompasses all sovereign states and therefore possesses the virtue of being com