Greenhalgh v Arderne Cinemas Ltd [1946] 1 All ER 512
Country:
United Kingdom
Reviewed By Oxbridge Law Team
Updated 2024-01-04 07:05:50 UTC
Company’s ordinary shares were divided into 50p shares, and 10p shares.
Articles provided for each share (regardless of value) to get one vote each. Was proposed to sub-divide 50p shares into 10p shares, so that holders of 50p shares would then get 5 votes per share.
Held
-
Rights of 10p shareholders were not varied
I.e. was no formal change in rights attaching to 10p shares
This even though voting effectiveness of 10p shareholders was significantly diminished
-
However had the proposal been to simply give 50p shareholders 5 votes per share, this would have been variation
I.e. as 10p shares had a right to voting power paripassu with other ordinary shares
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