1933 (1) TMI 19

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..... the deed of guarantee is binding on the company. The instant that any sum is paid by the defendant to the trustee for the preference shareholders, Clause 7 according to its terms, authorizes the defendant to commence an, action for repayment of the sum, as if he were a creditor of the company entitled to rank in the same position as any other creditor. The capital of the company might thereby be .....

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..... r who is entitled to rights against the company quite different from the right which a preference shareholder has to payment of dividends out of profits, according to the company's articles of association and distinct from the right of a preference shareholder in a winding-up. In my opinion, therefore. Clause 7 is wholly ultra vires and void. On the other hand, preference shareholders are not en .....

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