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Purchase of Shares - Voidable Contracts
However an infant who applies to is allotted, a company's shares becomes a member to the company under S.28 (2) for the Companies Act from the moment such his name is entered into the register of members. Hence he then acquires membership rights so then becomes subject to membership obligations such any other member. Conversely he has a legal right to rescind the contract whether as has been a total failure of thoughtfulness that he paid the money for i.e. the shares have become worthless.
Therefore in Steinberg v. Scala (Leeds) Ltd. would the plaintiff so an infant shareholder, instituted rectification proceedings about a view to as;
Conversely the court held such she should not recover the money that already paid since the shares had some value but she as the plaintiff then had not received any dividends from the company. Hence she was entitled to have her name removed from such the members' register for as the company had agreed to do.
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