Martin Currie Ltd, Re and Order [2006] ScotCS CSOH_77 (17 May 2006)

The court confirmed the cancellation of the share premium account and dispensed with the requirements of sections 136(3) to (5) because the company's assets, including conservative valuations of shareholdings in subsidiaries, provided a substantial margin of solvency and there was no significant risk of prejudice to creditors.

Citation: [2006] ScotCS CSOH_77
Parties: Petitioner: Martin Currie Limited
Jurisdiction: Scotland
Judgment Date: 17 May 2006
Procedural Posture: Petition for Order Confirming Cancellation of Share Premium Account / Final Judgment
Outcome: Petition granted
Legal Topics: Reduction of Share Premium Account, Creditor Protection, Companies Act 1985 Section 136

Company Law Reduction of Share Premium Account Creditor Protection Companies Act 1985 Section 136

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Parties

Martin Currie Limited

Petitioner

Procedural Posture

Petition for Order Confirming Cancellation of Share Premium Account / Final Judgment

Legal Issues

1 Whether the court should confirm the cancellation of the share premium account and dispense with the requirements of sections 136(3) to (5) of the Companies Act 1985 regarding creditor protection

Ratio Decidendi

Court Disposition

Petition granted

Orders

Subsections (3) to (5) of section 136 of the Companies Act 1985 shall not apply as regards the creditors of the company.
Cancellation of the company's share premium account confirmed.