Hilder v Dexter
|Hilder v Dexter|
|Court||House of Lords|
|Citation(s)|| AC 474|
|Share, issue at a discount|
To raise working capital, United Gold Coast Mining Properties Ltd offered shares at par value to Mr Hilder and others with an option to take further shares at par for two years. After the share price rose, Mr Hilder wished to exercise his option.
Earl of Halsbury LC held that Hilder was entitled to exercise the option, as it in no way directly or indirectly contravened the rule against issuing shares at a discount under Companies Act 1900, section 8(2) (now Companies Act 2006, section 580).
- Cassim, Farouk H.I. (2006). "Ex Parte Standard Bank Group LTD and Liberty Groups LTD—Black Economic Empowerment Schemes and Section 38(2)(d) of the Companies Act". South African Law Journal. 123 (4): 600. Retrieved 3 January 2016. – via HeinOnline (subscription required)