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
Case Brief
Summary, issues, holding and outcome
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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
Legal Issues
- 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
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