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Mills v Mills [1938] 60 CLR 150

By Oxbridge Law TeamUpdated 04/01/2024 07:05

Judgement for the case Mills v Mills

Table Of Contents

  • Directors voted to pay out profits of a company in form of bonus shares to ordinary shareholders (instead of dividends). As result, voting power of preference shareholders was severely diminished.

  • Claimant, who had preference shares, sued for breach of duty.

Held

  • Where directors allot shares, is impractical to look at whether power was exercised for benefit of company.

  • Rather test for proper purposes is one of fairness as between individual shareholders.

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Company law Notes
805 total pages
1072 purchased

Company law notes fully updated for recent exams in the UK. These notes...