F: FAILURE OF PROPOSED ALLOTMENT165 Shareholders’ recovery of money on an unsuccessful allotmentWhere a company is placed into administration, receivership or even liquidation, there is no general principle that subscribers to an allotment are entitled to their money back if the company or even the particular allotment is not as successful as was hoped. The money subscribed for the shares will generally become the property of the company and, in the case of a receivership or liquidation, be applied by the insolvency practitioner to pay the company’s creditors, in which case the shareholders can only wait in line.There is
Where a company is placed into administration, receivership or even liquidation, there is no general principle that subscribers to an allotment are entitled to their money back if the company or even the particular allotment is not as successful as was hoped. The money subscribed for the shares will generally become the property of the company and, in the case of a receivership or liquidation, be applied by the insolvency practitioner to pay the company’s creditors, in which case the shareholders can only wait in line.
There is
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
0330 161 1234