A petition was presented for the re-organisation of the company in circumstances in which, though it was was wholly insolvent, proposed a transfer of its entire undertaking to a new company, the shares in the new company being allotted to the creditors of the old. No shareholder in the old company was to take shares (or indeed any other interest) under the scheme. Part of the dispute was whether or not shareholders should have been offered something or whether their position could be ignored because they had no interest in the company.
Held: The scheme was not unfair on the shareholders, but in the circumstances it was ultra vires.
Judges:
Simonds J
Citations:
[1939] 1 Ch 4
Jurisdiction:
England and Wales
Cited by:
Cited – Mytravel Group Plc, Re Companies Act 1985 ChD 24-Nov-2004
The company sought approval of a proposed reconstruction under the section.
Held: Approval could not be given. To count as a reconstruction two principal qualities were required. The business carried on should be the same or similar, and those . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 25 July 2022; Ref: scu.220254