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3 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Shares |
Section 868 CAMA defines a share to mean the interests in a company's share capital of a member who is entitled to share in the capital or income of such company; and except where a distinction between stock and shares is expressed or implied, includes stock. Therefore, a share is a unit of a member’s interest in a company which attaches to it rights and liabilities (CAMA 2019 S. 138; BORLAND’S TRUSTEE V. STEEL BROS. & CO). Supreme CT held in OKOYA V SANTILI that shares represent a unit of the bundles of rights and liabilities which people hold in companies. Finally, a share is a chose in action, personal property, which is transferable in the manner prescribed in the Articles (s.139 & OKOYA V. SANTILI). |
Section 868 Cama |
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Legal nature of a share |
LEGAL NATURE OF A SHARE • Personal property (a chose in action) • An intangible personal right, which a person has in a company. • Res in persona • It confers a bundle of rights and liabilities |
Res in personaty |
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Types of shares |
• A company may, where so authorised by its articles issue classes of shares s. 143(1) • Shares shall not be treated as being of the same class unless they rank equally for all purposes S. 143(2) |
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