The long established rule on the maintenance of share capital is that “a company cannot, without the leave of the court or the adoption of a special procedure, return its capital to its shareholders. It follows that a transaction, which amounts to an unauthorized return of capital is ultra vires and cannot be validated by shareholder ratification or approval”.(Hoffman j in Aveiling Bardford v Perion Ltd [1989] BCLC 626)
Critically discuss this statement with reference to case law and statutory provisions.
Respond to your colleagues’ postings in one or more of the following ways:
Ask a probing question.
Share an insight from having read your colleague’s posting.
Offer and support an opinion.
Validate an idea with your own experience.
Make a suggestion.
Expand on your colleague’s posting.
WOULD LIKE TO SUPPORT AND EXPAND ON THE POSTINGPLEASE