LAWS2301 Study Guide - Final Guide: Extraordinary Resolution, Fiduciary, Unlimited Company
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Laws2301 exam notes - transactions affecting share capital: Selective reduction = targeted at specific class of shareholders, not all: s. 256b(1) a share for no consideration is a share capital reduction, s. 256b(1a) a cancellation of a partly-paid share is taken to be for consideration. S. 256c(1) if the reduction is an equal reduction, it must be approved by ordinary resolution passed at the gm of a company. Selective reduction requires: prior approval of a special resolution with no votes cast by persons who would receive consideration, a resolution agreed at a general meeting by all ordinary shareholders s. 256c(2) If the reduction involves cancellation of shares, a special resolution by shareholders whose shares are to be cancelled is required. Share buy-backs types: equal access scheme, s. 257b(2) offers uniform terms to only and all shareholders who all have reasonable opportunity to accept offers made to them and the terms of all offers are the same.
