Variation of class rights, Business Law and Ethics

Assignment Help:

Variation of class rights:

It is only necessary to follow the variation of class rights procedure (and a dissenting minority can only apply to the court for cancellation)  if what is proposed amounts to a variation of the class, right of itself.  It is not a variation of class rights:

to issue shares of the same class to allottees who are not already members of the class (unless the defined class rights prohibit this);

WHITE v. BRISTOL AEROPLANE CO.

The company made a bonus issue of new ordinary and preference shares to the existing ordinary shareholders who alone were entitled under the article to participate in bonus issues.  The existing preference shareholders objected that by reducing their proportion of the class of preference shares the bonus issue was a variation of class rights to which they had not consented.


Related Discussions:- Variation of class rights

Statutory corporation and chartered corporation, Statutory Corporation a...

Statutory Corporation and Chartered Corporation Statutory Corporation However this is created through an Act of Parliament and comes in existence from the date of c

Explain the open method of coordination, Explain the open method of coordin...

Explain the open method of coordination There are at least five levels at which coordination can occur such as, - international, regional, national, sub-national and sectoral

Impose a duty on directors, Impose a duty on directors: A company is, ...

Impose a duty on directors: A company is, however, free to impose a duty on its directors to attend board meetings within a certain period of time and to prescribe the consequ

Proceedings at meetings - meetings and resolutions, Proceedings at Meetings...

Proceedings at Meetings: (a)Each item of business comprised in the notice should be taken separately, discussed and put to the vote.  Members may propose ammendments to the re

Qualifications of advocates, Qualifications of Advocates Conversely fo...

Qualifications of Advocates Conversely for qualify to admission as an advocate one must as; Be a US citizen or can say Possess a law degree from a recognized

Companys debts, Companys debts: In case a company is unable to pay its...

Companys debts: In case a company is unable to pay its debts the creditors, or a creditor, may petition the High Court for an order to wind it up. During the winding up the me

Four step process to defence - law , Duomo Pty Ltd manufactures engineering...

Duomo Pty Ltd manufactures engineering equipment and is a leading industry supplier in Australia and New Zealand. The 'Duomo Drill Press' (Duomo) is a very popular product that has

Analyse and discuss to minority shareholders, "Within a company there are m...

"Within a company there are many areas of potential disagreement among members. As the range of potential disagreement is very broad, so also is the scope for exploitation and abus

Legal personality and natural persons, Legal Personality and Natural Person...

Legal Personality and Natural Persons Legal Personality Therefore from a legal point of view there a person is anything that the laws of a particular country recognize

Explain the need for rules in interpreting statutes, Question 1: (a) I...

Question 1: (a) In the Mauritian Legal System, there is a hierarchy of courts. Describe the various courts. (b) State and critically examine the features of the 5 main sour

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