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Discuss the capital maintenance doctrine

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Reference no: EM133165641

Question - Trevor v Whitworth is one of the leading cases of company law. In this case, a company re-purchased almost a quarter of its own shares.

During the liquidation of the company, one of the company's shareholder requested that the balance that remained be transferred to him, in lieu on the amount the company owed him.

The court did not allow it because of the Capital Maintenance Doctrine.

Discuss the 'Capital Maintenance Doctrine' and say outline it was first implemented.

Reference no: EM133165641

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