* A company that has share capital can issue shares with different rights.
* In Cumbrian Newspapers Group Ltd v Cumberland Newspapers & Printing Co Ltd, the plaintiff, who held 10% of the shares in the defendant, also had the benefit of rights of pre-emption over some other shares, rights over unissued shares and the right to appoint a director in the defendant. The defendant had granted such rights by amending its articles when the shares were issued to the plaintiff. As the defendant now proposed to cancel the relevant articles the plaintiff sought a declaration that the rights were class rights which could not be abrogated without its consent.
* the court analysed the vitrine of rights which can be conferred by the articles into three categories:
(a)Rights or benefits which are annexed to detail shares, such as dividend rights and rights to participate in tautologic assets on a winding up.
(b)Rights or benefits which may be contained in articles which are conferred on individuals not in the ability of members or shareholders of the company.
(c)Rights or benefits that, although not attached to any particular shares, were, nonetheless, conferred on the beneficiary in the capacity of member or shareholder of the company.
* The rights which the plaintiffs enjoyed were of this third category. They would only be enjoyed when the plaintiff was a shareholder of the company.
* Lucky Lucifer Co Sdn Bhd has two classes of shares, to wit ordinary shares and preference shares. Ordinary shares refer to the shares which are not given any special rights whereas preference shares is that the investors will commonly have an entitlement to a fixed rate of dividend and they maintain their head of preference over ordinary shares.
* In our case, looking at AOA of the co., Investors of A shares are having...If you want to get a rich essay, order it on our website: Orderessay
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