Re Holders’ Investment Trusts [1971] 1 W.L.R. 583
Country:
United Kingdom
Reviewed By Oxbridge Law Team
Updated 2024-01-04 07:05:48 UTC
Trustees held majority of preference shares in a company, and all of the ordinary shares. Proposed to convert preference shares into loan stock (leading to a reduction in capital).
Was clear that when making proposition, they were acting entirely on basis of what was in interests of trust (as they were obliged to).
Held
Clear that trustees had not even applied their mind to question of what was in interests of preference shareholders as a class
Thus consent to variation given by preference shareholders invalid.
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