Someone recently bought our

students are currently browsing our notes.

Aveling Barford Ltd v Perion Ltd

[1989] BCLC 626

Case summary last updated at 23/01/2020 16:28 by the Oxbridge Notes in-house law team.

Judgement for the case Aveling Barford Ltd v Perion Ltd

Company sold some assets to a shareholder at less than their market value. Held:

· Transaction was a valid sale

Ø i.e. not a sham

· However as it was at an undervalue, was an unlawful distribution

Ø i.e. contravened rule that company must not return capital to its shareholders