The company entered into an approved scheme of arrangement under which the entire preference shares were cancelled. The company appealed a refusal to recognise the arrangement as a re-organization of the company with a deemed disposal and re-acquisition of the holdings of the shares at market value.
Held: It was of the essence of a reorganization that there should be a new share-holding. None such had been created. The ordinary shares left were not a new holding, there was no acquisition, and the cancellation of the preference shares did not work to revalue the shareholdings.
Judges:
Lord Justice Auld, Lord Justice Clarke, Lord Justice Jonathon Parker
Citations:
Times 22-Jan-2003, [2002] EWCA Civ 1787
Links:
Statutes:
Companies Act 1948 206, Taxation of Chargeable Gains Act 1992 126(1)
Jurisdiction:
England and Wales
Company, Capital Gains Tax
Updated: 06 June 2022; Ref: scu.178452
