Representation of Cape PLC [2011] JRC 127 (30 June 2011)

Representation of Cape PLC [2011] JRC 127 (30 June 2011)

The reduction of share capital by cancelling £607,647,161 in the share premium account and crediting it to a reserve for profit is approved as it is in the interests of the company and shareholders, has been properly notified, and does not prejudice creditors. Article 62(3)-(5) of the Companies (Jersey) Law 1991 shall not apply.

Citation
[2011] JRC 127
Parties
Applicant: Cape PLC
Jurisdiction
Jersey
Judgment Date
30 June 2011
Procedural Posture
Company Law Application / Application for Approval of Reduction of Share Capital
Outcome
Application granted
Legal Topics
Reduction of Share Capital, Share Premium Account, Dividends, Jersey Companies Law, Creditor Protection
Company Law Reduction of Share Capital Share Premium Account Dividends Jersey Companies Law Creditor Protection

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Parties

Cape PLC

Applicant

Procedural Posture

Company Law Application / Application for Approval of Reduction of Share Capital

Legal Issues

  1. 1 Whether the reduction of share capital by cancelling share premium and crediting to a reserve for profit should be approved
  2. 2 Whether Article 62(3)-(5) of the Companies (Jersey) Law 1991 should apply
  3. 3 Whether the reduction prejudices creditors

Ratio Decidendi

The reduction of share capital by cancelling £607,647,161 in the share premium account and crediting it to a reserve for profit is approved as it is in the interests of the company and shareholders, has been properly notified, and does not prejudice creditors. Article 62(3)-(5) of the Companies (Jersey) Law 1991 shall not apply.

Court Disposition

Application granted

Orders

  • Article 62(3)-(5) of the Companies (Jersey) Law 1991 shall not apply to this reduction.
  • £607,647,161 standing to the credit of the share premium account as at 17 June 2011 is cancelled and credited to a reserve for profit to be distributed as dividends or for other lawful purposes.