Re Northern Engineering [1994] 2 BCLC 704 (CA)
Country:
United Kingdom
Reviewed By Oxbridge Law Team
Updated 2024-01-04 07:05:47 UTC
Company’s articles provided that any reduction in capital would be a variation in class rights of the preference shares.
Defendant claimed that consent of class of preference shareholders was not required as a ‘reduction’ for purposes of articles did not include ‘cancellation’.
Held
‘Reduction’ did include a ‘cancellation’
-
Therefore consent of class of non-preference shareholders was required
This even though in event company had not made specific provision, consent of class would not have been required.
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