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
Case Brief
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Parties
Wolseley PLC
Applicant
Procedural Posture
Company Law Application / Confirmation of Reduction of Capital
Legal Issues
- 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.
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