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

Effective collective bargaining, Question 1: (i) Explain clearly the d...

Question 1: (i) Explain clearly the difference between Individual Bargaining and Collective Bargaining highlighting with examples the contexts in which each of them applies.

Explain how this power conferred on the fsc is exercised, QUESTION 1 Th...

QUESTION 1 The Financial Services Commission (FSC) is the licensing authority for businesses operating in the Global Business sector. By referring to the Global Business Catego

Explain about the policy co-ordination of each countries, Explain in detail...

Explain in detail about the policy co-ordination of each country With no policy coordination each country will attempt to maximise its own welfare, taking the other country's m

Article 8 - state responsibilty, Article 8 - State Responsibilty Articl...

Article 8 - State Responsibilty Article 8. Act of person or group of persons are presumed to be acting on the instructions of a state therefore even in such a situation the sta

Communication law, As a soon-to-be media practitioner, you will encounter m...

As a soon-to-be media practitioner, you will encounter many legal issues in the media industry. In this assignment, you are required to examine one main legal issue that media prac

Case law relating to dividends, Case Law Relating To Dividends: The ab...

Case Law Relating To Dividends: The above provisions of Table A supplement the following common law rules: 1)      Losses in previous years need not be provided for. Furthe

Illustrate the private bill of members, Illustrate the private bill of memb...

Illustrate the private bill of members? Private members’ Bill: It is where some MP’s are specified the chance (through ballot) to introduce a Bill on something which is o

What is the meaning of policy process planning, What is the meaning of Poli...

What is the meaning of Policy process planning We shall see a step wise guide applied in actual policy formulation. It will pull you out of the jungle of technical interconnect

Arbitration is overriding condition in business contracts, QUESTION 1 A...

QUESTION 1 Arbitration is an overriding condition in all business contracts. Without a clause for arbitration business relationship is bound to suffer. Critically examine this

Function of the court, Function of the Court: In Scottish Insurance Co...

Function of the Court: In Scottish Insurance Corporation Ltd v. Wilsons & Clyde Coal Co. Lord Simmons stated: "But important though its task is to see that the procedure by

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