Commentary

165 Shareholders’ recovery of money on an unsuccessful allotment

COMPANIES vol 10(1) Directors and Other Officers, Shareholders, Shares and Share Capital
| Commentary

165 Shareholders’ recovery of money on an unsuccessful allotment

| Commentary

F: FAILURE OF PROPOSED ALLOTMENT

165 Shareholders’ recovery of money on an unsuccessful allotment

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

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial