WebJun 8, 2024 · In Trevor v Whitworth, the House of Lords, in articulating this prohibition, held that its purpose was the preservation of the capital of the company and the prevention of a company trafficking in its own shares: it should, after all, preserve and devote its resources to pursuing its core business, and not extraneous purposes. WebTrevor v Whitworth [1887] LR 12 App Case 409, where the court held that paid up capital may be diminished in the course of business, but persons who deal with and give credit to a limited company are expecting that the company is trading with a certain amount of capital already paid, and they are entitled to assume that no part of
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WebDespite the rule in Trevor V Whitworth a company may purchase or acquire its own shares in the following cases: a) Where it acquires its own fully paid shares otherwise than for valuable consideration, as in Re: Castiglione's Will Trusts (49), b) Where it is a purchase of redeemable shares under S.60 of the Act. This is permitted because the redemption "shall … WebPP v Lew Syn Pau . and in the recent civil litigation of . Wu Yang Construction Group v Zhejiang Jinyi Group Co, Ltd, the Singapore High Court had to determine the scope of the prohibition under s 76 of the Companies Act. This case comment examines the two Singapore decisions and suggests that there appears to be a divergence in the views on mercy parklands closure
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WebMay 13, 2012 · From this principle, enshrined in the 1887 House of Lords decision Trevor v Whitworth, all sorts of incidental prohibitions arise on transactions which are in effect a return of that capital to shareholders by some other means. Some of … WebTrevor v Whitworth and others. House of Lords 1887. Headnote: A company formed and registered under the Companies Acts has no power to purchase its own shares even … WebTrevor v Whitworth (1887) Private company: may reduce share capital by solvency statement route; or. ss 641–644. court approval route; ss 641 and 645–651. may acquire its own shares out of capital. ss 687, 690 and 709–723. Public company: ss 641 and 645–651 j. may reduce share capital by court approval route; Ex parte Westburn Sugar ... mercy parklands hospital