Wherever a company has passed a special resolution for reducing its capital the Court has jurisdiction to entertain a petition at the instance of the company, for an order confirming such reduction. There are no other conditions-precedent to such jurisdiction, and, in particular, it need not be proved that the capital which is to be cancelled is lost or unrepresented by available assets. The petition will be granted by the Court if the interests of creditors are properly safeguarded, and if the proposed reduction is a prudent and business like measure, not unfair to any shareholder, or detrimental to the public.
Judges:
Lord Chancellor (Loreburn), Lords Macnaghten, Robertson, and Atkinson
Citations:
[1907] UKHL 616, 45 SLR 616
Links:
Jurisdiction:
England and Wales
Company
Updated: 27 April 2022; Ref: scu.622293