Here is the synopsis of our sample research paper on Company Law; Preference Shares and Winding-Up Orders. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 10 page paper looks at to case studies covering English company law. The first case concerns preference shareholders who are in dispute with directors that also own 80% of the company’s ordinary shares. The directors want to change the rights associated with the preference shares without the consent of the preference shareholders and are also threatening to try and cancel the shares or to issue sufficient additional preference share to render the existing shareholders impotent. The paper advises the preference shareholders. The second part of the paper looks at a company that has gone into liquidation with a floating charge and having sold properties below market value in the recent past. The paper looks at the debt and at the way fraud and incompetence may be examined. The bibliography cites 10 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEbankprefshare.rtf
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Unformatted sample text from the term paper:
ordinary shares are held by the directors. The company has been making a loss, and the dividends of 7% which are set out in the articles of association. The directors
want to get out of this liability, they first want to reduce the dividend to 2%, and when the preference shareholders resist this. The directors tell the shareholders there are
two other courses of action, either the cancellation of the shares with no return to the shareholders or the directors will issue new preference shares to outnumber the existing preference
shareholders which they could agree to receive in lieu of payment for extra consultancy services. The directors are behaving very aggressively and placing the preference shareholders in a very difficult
position. We are told that the articles of association specify that there is a preference dividend of 7%. The first aspect of
the case is the company wanting change the rights that attach to these shares. According to the case of Scottish Insurance v Wilson & Clyde Coal Co [1949] A.C. 462
is was shown that the way in which the rights of these shareholder can be amended is the way in which each of the classes rights are constructed at the
initial creation of that class. The main rights here are the dividend and also the referential right to capital on the wising up of the company.
The company can try to alter the rights that attach to any class of share, but the way it is achieved will depend on the source
of the right to make this change, it may be allowed for in the memorandum, alternatively it may be in the articles or elsewhere. If the right to amend is
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