Representation of Wolseley Plc [2011] JRC 007 (14 January 2011)

Representation of Wolseley Plc [2011] JRC 007 (14 January 2011)

The reduction of capital was confirmed because shareholders were treated equitably, the proposal was properly explained, there was a discernible purpose, and there were no creditors affected. The reduction was an accounting entry and did not involve diminution of liability or payment to shareholders. Compliance with statutory requirements was satisfied.

Citation
[2011] JRC 007
Parties
Applicant: Wolseley PLC
Jurisdiction
Jersey
Judgment Date
14 January 2011
Procedural Posture
Company Law Application / Confirmation of Reduction of Capital
Outcome
reduction of capital confirmed
Legal Topics
Reduction of Capital, Scheme of Arrangement, Share Premium Account, Distributable Reserves

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Parties

Wolseley PLC

Applicant

Procedural Posture

Company Law Application / Confirmation of Reduction of Capital

  1. 1 Whether the reduction of capital by cancellation of the share premium account and transfer to profit and loss reserve should be confirmed under Article 62 of the Companies (Jersey) Law 1991

Ratio Decidendi

The reduction of capital was confirmed because shareholders were treated equitably, the proposal was properly explained, there was a discernible purpose, and there were no creditors affected. The reduction was an accounting entry and did not involve diminution of liability or payment to shareholders. Compliance with statutory requirements was satisfied.

Court Disposition

reduction of capital confirmed

Orders

  • Reduction of capital by cancellation of share premium account and transfer to profit and loss reserve confirmed.
  • Draft minute approved.