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Good Day Sir!
Does this amount to variation of class rights or not?
-Shares of one class are subdivided with the effect of increasing the voting rights of that class.
The BPP kit says that it isn’t a variation of class rights but the definition of variation of class rights states that it is any change or alteration made to rights attached to a particular class of shares in a company and here in the question above,it says that there is an ‘effect of increasing the voting rights of that class’. Doesn’t that constitute a variation of class rights as well sir?
Thank you
Hmmmm! I seem to remember, in the very deepest depths of my memory, an ancient case Rights and Issues Investment Trust v Stylo shoes
In this case, the rights of one class of share (the management shares I believe) were varied to the overall detriment of the other classes
BUT the other classes failed in their claim that their rights had been affected. I seem to remember that the learned judge said something along the lines of ‘You held shares that carried one vote per share held and you continue to hold shares that carry one vote per share held. So how are your rights affected?’
I can’t imagine a situation where one class of share has their voting power increased and someone in that class objects on the grounds of variation of class rights.
Has this helped?
No Sir , I didn’t understand in full but today was my exam and luckily variation of class rights wasn’t examined !
I passed the exam with a score of 81 after studying for just one month and using OpenTution resources. I want to thank you for your notes, help in answering doubts in the forums and of course your lectures…even some boring topics were covered in a humorous and easy to understand way by you, sir.
Thank you once again and God bless you!
81! Great score and after just one month. Really good. Might I suggest that, for future exams, you don’t leave your question asking to the last minute 🙂
Again, Sheikh, very well done and good fortune in your forthcoming studies
That was a mistake on my side, I agree sir but I had just come across it the day before my exam!
Thank you very much for your wishes!
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