Company Law 1 - University of Wolverhampton

Study Unit 8 Suggested minimum study hours: 10TopicMaintenance of Share CapitalThis Unit covers material contained in the Learning Project.IntroductionIt is essential for a company to maintain its share capital for the benefit of the company, its membersand its creditors.Objectivesa To consider the rationale behind the rule that a company must not issue shares at a discountand how this has been weakened, if at all.Look at the provisions of ss99–116 CA 1985 and their effect on this principle.b To examine the principles which have evolved to ensure that a company’s capital is maintained.Consider the weaknesses in these principles and the effect of ss142–149 CA 1985.c To consider the provisions of ss151–158 CA 1985. Are the exceptions to the general principlesin s151 clear?Essential ReadingThese titles have been supplied as part of your study materials.Company Law by John Lowry and Alan Dignam OUP 2006Statutes on Company Law 2007-2008Cases and Materials on Company Law (Andrew Hicks and S Goo)General ReadingThese titles have not been supplied and are not essential reading, butyou may wish to refer to them to further your understanding.Gower and Davies: the Principles of Modern Company Law, Davies –Relevant Chapter(s)Case law and statutesAcatos and Hutcheson v Watson [1995] 1 BCLC 218Arab Bank plc v Mercantile Holdings Ltd and Another [1993] BCC 816Belmont Finance Corporation Ltd v Williams Furniture Ltd (No 2) [1980] 1 All ER 393Bradford Investments Ltd (No 2), Re [1991] BCC 379Brady v Brady [1989] AC 755Heald v O’Connor [1971] 1 WLR 497Henry Head and Company Limited v Ropner Holdings Limited [1952] Ch 124Holder’s Investment Trust Ltd, Re [1971] 1 WLR 583Ooregum Gold Mining Company of India v Roper [1892] AC 125Park Business Interiors Ltd v Park [1990] BCC 914