Successive stages of a capital reorganisation, Business Law and Ethics

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Successive stages of a capital reorganisation:

There was a sequence of general and class meetings to approve the successive stages of a capital re-organisation.  Out of 1,600 members present only 565 were holders of deferred shares.  But only the holders of shares of each class were invited to vote (as a class) at their class meeting.  The others present took no part.

It was held that there was no irregularity of procedure in conducting a class meeting in the presence of non-members of the class.  A class meeting is one at which only members of a particular class vote.  It does not matter that others who are not members of the class are present.


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