The company had entered into an investment scheme (E Shares) to avert liability to tax. On the assumed failure of that scheme the company now sought to avoid set aside all the material transactions that were entered into as part of its E Shares scheme on the grounds that they were unlawful on various company law grounds. The Company said that the transactions should properly be characterised as distributions to shareholders, rather than remuneration to directors/employees (as they were described), and that they were therefore unlawful; additionally, the Company asserts that the transactions fell foul of restrictions in the 2006 Act relating to the issue of shares at a discount (s.580) and the payment of commissions (ss.552 and 553).
Held: The claims were dismissed.
Michael Green QC
[2020] EWHC 1054 (Ch)
Bailii
Companies Act 2006 580 552 53
England and Wales
Taxes Management, Company
Updated: 07 January 2022; Ref: scu.650754