| Commentary

111 Procedure for variation

| Commentary

2: VARIATION OF CLASS RIGHTS

111 Procedure for variation

The very nature of class rights requires that statutory safeguards be provided so that one class is not deprived of its rights by votes of other classes of shareholders. Consequently, where a company’s articles contain provision setting out the procedure for variation1 of the rights attached to a class of its shares, that procedure must be followed2. Where there is no such provision, the rights can only be varied if3:

  1. 111.1

        the holders of at least three-quarters in nominal value of the issued shares of that class (excluding any shares held as

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