Representation of WPP Plc [2013] JRC 031 (07 February 2013)
Where a reduction of capital involves transferring funds from a share premium account to a reserve of profit, and distributions from both accounts are subject only to the solvency statement, creditor protection measures are not required as creditors cannot be prejudiced; the court will confirm the reduction if satisfied on this point.
- Citation
- [2013] JRC 031
- Parties
- Applicant: WPP plc
- Jurisdiction
- Jersey
- Judgment Date
- 07 February 2013
- Procedural Posture
- Company Law Application / Application for Court Confirmation of Reduction of Capital
- Outcome
- application granted
- Legal Topics
- Reduction of Capital, Creditor Protection, Share Premium Account, Distributions, Solvency Statement
Case Brief
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Parties
WPP plc
Applicant
Procedural Posture
Company Law Application / Application for Court Confirmation of Reduction of Capital
Legal Issues
- 1 Whether the court should confirm a reduction of capital involving transfer from share premium account to reserve of profit
- 2 Whether creditor protection measures are required post-2008 amendments to Jersey law
Ratio Decidendi
Where a reduction of capital involves transferring funds from a share premium account to a reserve of profit, and distributions from both accounts are subject only to the solvency statement, creditor protection measures are not required as creditors cannot be prejudiced; the court will confirm the reduction if satisfied on this point.
Court Disposition
application granted
Orders
- Reduction of capital confirmed as proposed
- Minute showing revised share capital approved
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