1933 (1) TMI 19 - HC - Companies Law

Summary

The judgment declared Clause 7 of the deed of guarantee as ultra vires and void, as it allowed the defendant to commence an action for repayment of sums paid to the trustee for preference shareholders, which could reduce the company's capital in a manner inconsistent with legal principles. The declaration did not affect the defendant's potential subrogation rights to preference shareholders' claims.