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Re Sunrise Radio Ltd

[2009] EWHC 2893 (Ch)

Case summary last updated at 23/01/2020 14:32 by the Oxbridge Notes in-house law team.

Judgement for the case Re Sunrise Radio Ltd

C had 15% shareholding in a company. Company made issue of shares despite knowing that C would be unable to exercise her rights o pre-emption, and as result shareholders was decreased to 8%. Sued under s.994. Held:
 
·       Where directors know a shareholder might not have enough money to subscribe, directors must consider what price could and should be extracted from those willing and able to subscribe
Ø  i.e. should not simply issue shares at par without thinking about it
·       This is particularly case where directors exercising the power stand to benefit from the exercise of power in a particular way.
·       Price that should be offered depends on circumstances of case.

Re Sunrise Radio Ltd crops up in following areas of law