In re WPP v [2013] 1 JLR 175 (07 February 2013)

In re WPP v [2013] 1 JLR 175 (07 February 2013)

Court approval for reduction of share capital is discretionary and must be based on satisfaction that shareholders are treated equally, proposals are properly explained, reduction has a discernible purpose, and creditors are not prejudiced by the transfer from capital account to non-capital account.

Citation
[2013] 1 JLR 175
Parties
Applicant: WPP
Jurisdiction
Jersey
Judgment Date
07 February 2013
Procedural Posture
Company Law Application / Capital Reduction Approval
Outcome
reduction of share capital approved
Legal Topics
Reduction of Share Capital, Court Discretion, Shareholder Interests, Creditor Protection
Company Law Reduction of Share Capital Court Discretion Shareholder Interests Creditor Protection

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Parties

WPP

Applicant

Procedural Posture

Company Law Application / Capital Reduction Approval

Legal Issues

  1. 1 Whether the court should approve the reduction of share capital
  2. 2 Whether shareholders are treated equally
  3. 3 Whether proposals are properly explained

Ratio Decidendi

Court approval for reduction of share capital is discretionary and must be based on satisfaction that shareholders are treated equally, proposals are properly explained, reduction has a discernible purpose, and creditors are not prejudiced by the transfer from capital account to non-capital account.

Court Disposition

reduction of share capital approved

Orders

  • reduction of share capital permitted as proposed