The Oregon Mortgage Co., Ltd Petitioners [1910] ScotLR 702 (06 July 1910)

The Oregon Mortgage Co., Ltd Petitioners [1910] ScotLR 702 (06 July 1910)

A resolution to reduce capital is incompetent if passed before the articles conferring power to reduce capital are duly confirmed; the company must first obtain power by confirmed alteration of articles before passing a valid reduction resolution.

Citation
[1910] ScotLR 702
Parties
Petitioner: The Oregon Mortgage Company, Limited
Jurisdiction
Scotland
Judgment Date
06 July 1910
Procedural Posture
Petition for Confirmation of Reduction of Capital / Single Bills, Inner House, Second Division
Outcome
Petition continued; reduction of capital not confirmed
Legal Topics
Reduction of Capital, Alteration of Articles of Association, Special Resolutions, Companies (consolidation) Act 1908

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Parties

The Oregon Mortgage Company, Limited

Petitioner

Procedural Posture

Petition for Confirmation of Reduction of Capital / Single Bills, Inner House, Second Division

  1. 1 Whether a company without power under its articles can validly resolve to reduce capital before the articles are altered and confirmed to confer such power

Ratio Decidendi

A resolution to reduce capital is incompetent if passed before the articles conferring power to reduce capital are duly confirmed; the company must first obtain power by confirmed alteration of articles before passing a valid reduction resolution.

Court Disposition

Petition continued; reduction of capital not confirmed

Orders

  • Petition for confirmation of reduction of capital continued; no confirmation granted