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

Differences members and creditors voluntary wind up, Differences members an...

Differences members and creditors voluntary wind up: main differences between a members' and a creditors' voluntary winding up are that : (a) in a creditors' voluntary win

What is policy clustering, What is Policy Clustering Adoption of polici...

What is Policy Clustering Adoption of policies is motivated by the observation that nation-states, or some other jurisdictional unit, choose similar institutions within a fairl

Case law - statutory provisions, CASE LAW:    The aforesaid statutory ...

CASE LAW:    The aforesaid statutory provisions for the protection of minorities have been supplemented by judicial intervention in a variety of cases which are generally expl

Explain united nations commission on india and pakistan, Explain United Nat...

Explain United Nations Commission on India and Pakistan One such resolution dated 20th  January 1948 created United Nations Commission on India and Pakistan (UNCIP), which was

How many types of immunities are there, There are various types of immunit...

There are various types of immunities, such as; The diplomatic immunity, Immunities of international organizations, Sovereign of state immunity and Acts of state doctr

Remedies of the buyer - sales of goods, Remedies of the Buyer - Sales of Go...

Remedies of the Buyer - Sales of Goods (a)Damages for non-delivery Section number 51 (1) provides that whether the seller wrongfully neglects or refuses to deliver the go

Tort example - property from injury, A landowner has a duty to protect a p...

A landowner has a duty to protect a person that enters his/her property from injury.  If the person is a guest or licensee, then it is a higher duty of care.  However, the landowne

Explain international law on siachen issue, /* Style Definitions */ table...

/* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-prior

Information in agenda setting, Information in Agenda Setting What infor...

Information in Agenda Setting What information, how and when reaches to voters to proposal, is also a detrimental factor in policy process. The degree to which information is c

Negotiable instruments - law of contract, Negotiable Instruments - Law of C...

Negotiable Instruments - Law of Contract However past services may constitute valuable consideration to a bill of exchange under by s.27 of the Bills of Exchange Act that prov

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