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CHAPTER 8
MEMBERSHIP OF A COMPANY

A Company may, if authorised by its memorandum, own shares in another company. It attends meetings by a duly appointed representative (s. 139).
A Company cannot be a Member of Itself, that is to say, it cannot purchase it own shares or be entered on its share register as one of its own shareholders. A purchase by a company of its own shares is illegal because it involves a return of capital to the shareholder, which amounts to a reduction of the company's capital without the consent of the Court.

Trevor v. Whitworth (1887), 12 A. C. 409. A company was authorised by its articles to purchase its own shares. W. sold his shares to the company, and before the price was paid the company went into liquidation. W. claimed to prove in the liquidation for the price of the shares. Held, the claim failed, as the company had no power to purchase its own shares.

To prevent this rule from being evaded by the device of a loan by the company to a person to enable him to buy or subscribe for the company's shares, s. 54 makes it unlawful for a company to provide financial assistance for the purchase of its own shares. Whether the financial assistance takes the form of a loan, a guarantee, or the provision of security (20) by the company, whether directly or indirectly, it is equally unlawful, under a penalty on the company and every officer who is in default, of a fine of f100.

Exception is made in the following cases:
(a) The lending of money by a company for this purpose, where its ordinary business is the lending of money.
(b) The provision by a company, in accordance with a scheme, of money for the purchase by trustees of fully-paid shares in the company to be held for the benefit of the employees of the company, including a director holding a salaried employment with the company.
(c) The making by a company of loans to persons, other than directors, bona ide in the employment of the company with a view to enabling them to purchase fully-paid shares in the company to be held by themselves beneficially.
The aggregate amount of any outstandingl cans made under heads (b) and (e) above must be shown as a separate item in the balance sheet (8th Sch., para. 8 (1) (c)).

The substance of s. 54 is frequently embodied in the articles, as in Table A, Art. 10.
There is nothing to prevent a transfer of shares in a company to a trustee for the company itself, as long as the transfer is voluntary, and there is no unpaid liability on the shares. (21)

20 Means a" valid security." Victor Battery Co, v. Curry's Ltd., [1946] Ch. 242.
21 Kirby v. Wilkins, [1929] 2 Ch. 444.

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where is HTML where is HEAD where is TITLE A Company may, if authorised by its memorandum, own shares in another company. It attends meetings by a duly appointed representative (s. 139). A Company cannot be a Member of Itself, that is to say, it cannot purchase it own shares or be entered on its share register as one of its own shareholders. A purchase by a company of its own shares is illegal because it involves a return of capital to what is shareholder, which amounts to a reduction of what is company's capital without what is consent of what is Court. Trevor v. Whitworth (1887), 12 A. C. 409. A company was authorised by its articles to purchase its own shares. W. sold his shares to what is company, and before what is price was paid what is company went into liquidation. W. claimed to prove in what is liquidation for what is price of what is shares. Held, what is claim failed, as what is company had no power to purchase its own shares. To prevent this rule from being evaded by what is device of a loan by what is company to a person to enable him to buy or subscribe for what is company's shares, s. 54 makes it unlawful for a company to provide financial assistance for what is purchase of its own shares. Whether what is financial assistance takes what is form of a loan, a guarantee, or what is provision of security (20) by what is company, whether directly or indirectly, it is equally unlawful, under a penalty on what is company and every officer who is in default, of a fine of f100. Exception is made in what is following cases: (a) what is lending of money by a company for this purpose, where its ordinary business is what is lending of money. (b) what is provision by a company, in accordance with a scheme, of money for what is purchase by trustees of fully-paid shares in what is company to be held for what is benefit of what is employees of what is company, including a director holding a salaried employment with what is company. (c) what is making by a company of loans to persons, other than directors, bona ide in what is employment of what is company with a view to enabling them to purchase fully-paid shares in what is company to be held by themselves beneficially. what is aggregate amount of any outstandingl cans made under heads (b) and (e) above must be shown as a separate item in what is balance sheet (8th Sch., para. 8 (1) (c)). what is substance of s. 54 is frequently embodied in what is articles, as in Table A, Art. 10. There is nothing to prevent a transfer of shares in a company to a trustee for what is company itself, as long as what is transfer is voluntary, and there is no unpaid liability on what is shares. (21) 20 Means a" valid security." Victor Battery Co, v. Curry's Ltd., [1946] Ch. 242. 21 Kirby v. Wilkins, [1929] 2 Ch. 444. where is meta name="keywords" content="old books, Free book , free book offer , free audio books , free coloring book pages , free book reports , free audio book , audio books free download , book free , free guest book , books free , free book summaries , download free audio books , free childrens books." where is where are they now rel="stylesheet" type="text/css" href="../../style.css" where is meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" where is BODY bgColor=#ffffff text="#000000" where are they now ="#000000" v where are they now ="#FF0000" where is div align="center" where is strong where is strong where is a href="http://www.aaoldbooks.com" Books > where is a href="../default.asp" title="Book" Old Books > where is strong where is a href="default.asp" Poetry Northwest (1959) where is table width="700" border="1" align="center" cellpadding="15" cellspacing="0" where is center where is tr where is td width="160" align="center" valign="top" where is div align="center" where is td align="center" valign="top" where is div align="left" where is div align="center" where is p align="left" Page 69 where is strong CHAPTER 8 MEMBERSHIP OF A COMPANY where is p align="justify" A Company may, if authorised by its memorandum, own shares in another company. It attends meetings by a duly appointed representative (s. 139). A Company cannot be a Member of Itself, that is to say, it cannot purchase it own shares or be entered on its share register as one of its own shareholders. A purchase by a company of its own shares is illegal because it involves a return of capital to what is shareholder, which amounts to a reduction of what is company's capital without what is consent of what is Court. Trevor v. Whitworth (1887), 12 A. C. 409. A company was authorised by its articles to purchase its own shares. W. sold his shares to what is company, and before what is price was paid what is company went into liquidation. W. claimed to prove in what is liquidation for what is price of what is shares. Held, what is claim failed, as what is company had no power to purchase its own shares. To prevent this rule from being evaded by what is device of a loan by what is company to a person to enable him to buy or subscribe for what is company's shares, s. 54 makes it unlawful for a company to provide financial assistance for what is purchase of its own shares. Whether what is financial assistance takes what is form of a loan, a guarantee, or what is provision of security (20) by what is company, whether directly or indirectly, it is equally unlawful, under a penalty on what is company and every officer who is in default, of a fine of f100. Exception is made in what is following cases: (a) what is lending of money by a company for this purpose, where its ordinary business is what is lending of money. (b) what is provision by a company, in accordance with a scheme, of money for what is purchase by trustees of fully-paid shares in what is company to be held for what is benefit of what is employees of what is company, including a director holding a salaried employment with what is company. (c) what is making by a company of loans to persons, other than directors, bona ide in what is employment of what is company with a view to enabling them to purchase fully-paid shares in what is company to be held by themselves beneficially. what is aggregate amount of any outstandingl cans made under heads (b) and (e) above must be shown as a separate item in what is balance sheet (8th Sch., para. 8 (1) (c)). what is substance of s. 54 is frequently embodied in what is articles, as in Table A, Art. 10. There is nothing to prevent a transfer of shares in a company to a trustee for what is company itself, as long as what is transfer is voluntary, and there is no unpaid liability on what is shares. (21) 20 Means a" valid security." Victor Battery Co, v. Curry's Ltd., [1946] Ch. 242. 21 Kirby v. Wilkins, [1929] 2 Ch. 444. where is Server.Execute("_SiteMap.asp") %

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