(New Zealand) The company a target of a takeover raised money (including by raising a loan on security of the company’s assets). Those were then used to declare lawful dividends which were then declared to the takeover shareholder.
Held: The arrangement did not to infringe Section 62 Companies Act 1955. The giving of lawful dividends was just an incident of the company activities as the raising of lawful loans and the repayment of lawful debts.
Citations:
[1973] 1 NZLR 133
Cited by:
Cited – Anglo 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.
Company, Commonwealth
Updated: 01 May 2022; Ref: scu.238729