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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
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
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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