In response to notorious scandals and great dissatisfaction caused by the speculative activities of asset strippers after the First World War, Parliament had decided to criminalise the giving of financial assistance by a company for the purpose of acquiring its own shares.
Judges:
Lord Greene MR
Citations:
[1942] Ch 235
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – MT Realisations Limited (In Liquidation) v Digital Equipment Co Limited CA 10-Apr-2003
The company was insolvent, depending upon loans to it from its parent company. In the liquidation, it was claimed that in a scheme for the acquisition of the shares, the assumption of liability to repay a loan amounted to unlawful financial . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 31 July 2022; Ref: scu.181068
