Chaston v SWP Group Plc: CA 20 Dec 2002

The ‘general mischief’ of Section 151 was to stop the resources of the target company and its subsidiaries being used directly or indirectly to assist the purchase financially to make the acquisition. The reason for this is that it might prejudice the interests of the creditors of the target group and the interest of any shareholders who accept the offer to acquire their shares or to whom the offer is made.


Arden LJ


[2002] EWCA Civ 1999, [2003] 1 BCLC 655




Companies Act 1985 151


England and Wales

Cited by:

CitedAnglo Petroleum Ltd v TFB (Mortgages) Ltd ChD 24-Feb-2006
The company sought to say that loans of 15 million pounds were void under s151 of the 1985 Act. It was said that the loans infringed the provisions of s151 being unlawful financial assistance.
Held: The loans were valid: ‘if it is lawful for a . .
Lists of cited by and citing cases may be incomplete.


Updated: 08 June 2022; Ref: scu.188988