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Cumbrian newspaper group ltd V cumberland & westmorland herald (1986)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Cumbrian newspaper group ltd V cumberland & westmorland herald (1986)

  • This topic has 5 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 26, 2017 at 1:04 pm #418069
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Facts:The claimant and the defendant were both publishers of
    newspapers. They negotiated a transaction whereby D would
    acquire one of C’s papers and C would acquire 10 per cent of D’s
    share capital. D issued the 10 per cent share holding and as part of
    the agreement under which the shares were issued amended its
    articles to give C certain rights including pre­emption rights over
    other ordinary shares. The purpose of such rights was to enable C
    as a shareholder to prevent a takeover. Subsequently, a few years
    later D called a meeting to pass a special resolution to cancel the
    articles which gave special rights to C. C sought a declaration that
    the rights were class rights which could not be cancelled without his
    consent.
    Held: The declaration was granted. The special rights granted were rights
    which could not be varied or cancelled without C’s consent.

    Sir, here how C can challenge the variation as C did not have 15% of the shares issued. He only have 10%. And as we know to challenge variation of class rights the shareholder must have at least 15% of shares?

    November 26, 2017 at 11:04 pm #418211
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    ANY member can take a claim to Court on the basis of just and equitable or where your personal rights are being infringed

    OK?

    November 27, 2017 at 4:15 pm #418456
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    But Sir in order to challenge the variation of class right, isn’t shareholder must have 15% of the shares issued? Here in the above case C has only 10% of shares, then how can he challenge the variation?

    November 28, 2017 at 1:25 am #418503
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    If a member feels that his personal rights are being infringed, then that individual member can complain

    This is what I wrote in my original response

    Do you ever actually read my replies?

    ANY individual member can complain on the basis that his individual personal rights are being infringed!

    November 30, 2017 at 7:54 pm #419252
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    In variation of class rights, if a member feels that his personal rights are being infringed, then that individual member can complain EVEN if he does not hold atleast 15% of shares in that class?

    December 1, 2017 at 8:28 am #419362
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    It’s in the heading of protection of minority rights and that part of English law is not in your syllabus

    But where an individual member feels that the acts of the majority are unfairly prejudicial to that person’s personal interests, that individual is able to complain to the Court and ask that the offending resolution be negated

    OK?

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Cumbrian newspaper group ltd V cumberland & westmorland herald (1986)’ is closed to new replies.

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