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Shareholders wanted the company to issue additional shares credited as 1 pound each fully paid whilst only ask the buyers of those shares to pay just 5 shillings per share – that would represent a discount of 15 shillings per share (20 shillings in one pound)
Later those same shareholders that had voted in favour of the issue at a discount now turned to the new buyers and asked fort hat extra 15 shillings
OK?
Now, let me ask you something …. why are you interested in that case? the only thing that you need to know is that it is illegal for a public company to issue shares at a discount.
That’s it! No case name to be remembered and certainly no year of the case. Just, very simply, remember that public companies are not allowed to issue shares at a discount
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