380:, writing for the Court, held that the new shares issued by the directors were invalid. The directors violated their duties as directors by issuing shares for the purpose of preventing the takeover. The power to issue shares creates a fiduciary duty and must only be exercised in order to raise capital and not for any other purposes such as to prevent a takeover. The act could not be justified on the basis that the directors honestly believed that it would be in the best interest of the company. The improper issuance of shares could only be made valid if the decision was
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Mr Baxter approached the board of directors of
Cramphorn Ltd. to make a takeover offer for the company. The directors (including Colonel Cramphorn who was managing director and chairman) believed that the takeover would be bad for the company, so they issued 5707 shares with ten votes each to the
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trustees of the employee’s welfare scheme (Cramphorn, an employee and the auditor). This meant they could outvote Baxter's bid for majority control. A shareholder, Mr Hogg, sued, alleging the issue of the shares was
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Brudney, 'Fiduciary
Ideology in Transactions Affecting Corporate Control' (1966) 65 Michigan Law Review 259
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Criterion
Properties plc v Stratford UK Properties LLC
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72:case on director liability. The Court held that
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447:Howard Smith Ltd v Ampol Petroleum Ltd
239:Howard Smith Ltd v Ampol Petroleum Ltd
155:Aberdeen Railway Co v Blaikie Brothers
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263:Re Sevenoaks Stationers (Retail) Ltd
681:Board of directors#"Proper purpose"
191:Re City Equitable Fire Insurance Co
143:The Charitable Corporation v Sutton
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629:Public Company Mergers Directive
586:Re Grierson Oldham and Adams Ltd
555:R (Datafin plc) v Takeover Panel
716:1967 in United Kingdom case law
706:United Kingdom company case law
215:Regal (Hastings) Ltd v Gulliver
251:Re Lo-Line Electric Motors Ltd
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666:Howard Smith Ltd v Ampol Ltd
76:who dilute the value of the
711:High Court of Justice cases
426:Takeover regulation sources
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661:, 199 A.2d 548 (Del. 1964)
510:Employment Rights Act 1996
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88:) are breaching their
80:in order to prevent a
287:Re Barings plc (No 5)
435:Hogg v Cramphorn Ltd
158:(1854) 1 Macq HL 461
65:Hogg v Cramphorn Ltd
21:Hogg v Cramphorn Ltd
609:Insolvency Act 1986
134:Director duty cases
74:corporate directors
68:Ch 254 is a famous
619:Companies Act 2006
598:Re Bugle Press Ltd
575:Companies Act 2006
544:Companies Act 2006
534:Companies Act 2006
498:Takeover Directive
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92:duty to the
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524:SI 2006/246
367:ultra vires
86:poison pill
700:Categories
687:References
632:2011/35/EU
621:ss 895-941
611:ss 110-111
577:ss 974-991
546:ss 942-965
520:TUPER 2006
501:2004/25/EC
290:1 BCLC 433
278:1 BCLC 561
29:High Court
646:takeovers
464:1 WLR 589
378:Buckley J
230:1 WLR 443
90:fiduciary
47:Buckley J
392:See also
382:ratified
373:Judgment
206:1 Ch 304
182:1 AC 554
170:2 Ch 421
52:Keywords
34:Citation
677:UKHL 28
669:AC 832.
489:rule 21
478:UKHL 28
345:UKSC 71
94:company
601:Ch 270
558:QB 815
450:AC 821
438:Ch 254
266:Ch 164
254:Ch 477
242:AC 821
194:Ch 407
37:Ch 254
589:Ch 17
536:s 168
100:Facts
84:(the
78:stock
26:Court
644:and
640:see
353:see
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522:(
419:e
412:t
405:v
127:e
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113:v
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