Right to prior repayment, Business Law and Ethics

Assignment Help:

Right to prior repayment:

Therefore this was not variation of class rights since the existing preference shareholders had the same number of shares (and votes at a class meeting) as before.

(a)   to subseparate shares of another class with the incidental effect of increasing the voting strength of that other class:

                            GREENHALGH v. ARDERNE CINEMAS

The company had two classes of ordinary shares, i.e. 50p shares and 10p shares.  Every share carried one vote.  A resolution was passed to subdivide each 50p share into five 10p shares, thus multiplying the votes of that class by five.

Held:

                   The rights of the original 10p shares had not been varied since they still had one vote per share as before.

(b)   to return capital to the holders of preference shares which carry no right on a winding up to share in surplus assets but merely a right to prior repayment;

                            RE SALTDEAN ESTATE CO. LTD.

The company had ordinary shares and preference shares.  The preference shareholders were entitled to the prior return of capital on a winding up but nothing more.  The company proposed to repay the preference shareholders with the court sanction and return their capital to them so that the class of preference shareholders would be eliminated.


Related Discussions:- Right to prior repayment

Define the term- international implications of enforcement, Define the term...

Define the term- international implications of enforcement Agencies cooperate over time, they converge towards common principles that might then serve as the foundation for the

Rights of co-guarantors, Rights of co-guarantors among themselves A guar...

Rights of co-guarantors among themselves A guarantor who that has paid more than his share below the guarantee is entitled such to contribution from his co-guarantors, although

Working of state jurisdiction, Working of State jurisdiction State juri...

Working of State jurisdiction State jurisdiction concerns essentially the extent of each State's right to regulate conduct or consequences of events. A state has the competence

Impact on businesses of phoenix activity, Q. Impact on businesses of phoeni...

Q. Impact on businesses of phoenix activity? In 1996 the Australian Securities Commission (ASC), published a report on phoenix activity titled Phoenix Activities and Insolvent

Goods - sales of goods, Goods - Sales of Goods Even if "goods" like in c...

Goods - Sales of Goods Even if "goods" like in common parlance has like the Act has given the word such technical meaning. Whether it provides like; "goods" consist of "all chat

Explain the meaning of class rights, Question 1: (a) Who is a director...

Question 1: (a) Who is a director of a company and describe how he may be appointed. (b) What are the duties owed by directors under the Companies Act 2001? Question 2

Demonstrate of mintzbergs roles of management, Question: Joe is the reg...

Question: Joe is the regional manager of a multinational company operating in your country. This business manufactures toys for children and sells them in several other countri

Notice of resignation, Notice of resignation: Regarding clause (e) abo...

Notice of resignation: Regarding clause (e) above, it was held in Latchford Premier Cinema Co. V Ennion that a verbal notice of resignation which is given to, and is accepted

Disadvantages of stare decisis - rigidity, Disadvantages of Stare Decisis -...

Disadvantages of Stare Decisis - Rigidity However the case law method of administration of justice has been criticized on the grounds which it leads to rigidity because the di

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd