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class="vector-toc-numb">2</span> <span>Companies and the general law</span> </div> </a> <button aria-controls="toc-Companies_and_the_general_law-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Companies and the general law subsection</span> </button> <ul id="toc-Companies_and_the_general_law-sublist" class="vector-toc-list"> <li id="toc-Forming_a_company" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Forming_a_company"> <div class="vector-toc-text"> <span class="vector-toc-numb">2.1</span> <span>Forming a company</span> </div> </a> <ul id="toc-Forming_a_company-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Corporate_personality" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Corporate_personality"> <div class="vector-toc-text"> <span class="vector-toc-numb">2.2</span> <span>Corporate personality</span> </div> </a> <ul id="toc-Corporate_personality-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Rules_of_attribution" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Rules_of_attribution"> <div class="vector-toc-text"> <span class="vector-toc-numb">2.3</span> <span>Rules of attribution</span> </div> </a> <ul id="toc-Rules_of_attribution-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Piercing_the_veil" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Piercing_the_veil"> <div class="vector-toc-text"> <span class="vector-toc-numb">2.4</span> <span>Piercing the veil</span> </div> </a> <ul id="toc-Piercing_the_veil-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Capital_regulations" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Capital_regulations"> <div class="vector-toc-text"> <span class="vector-toc-numb">2.5</span> <span>Capital regulations</span> </div> </a> <ul id="toc-Capital_regulations-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Corporate_governance" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Corporate_governance"> <div class="vector-toc-text"> <span class="vector-toc-numb">3</span> <span>Corporate governance</span> </div> </a> <button aria-controls="toc-Corporate_governance-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Corporate governance subsection</span> </button> <ul id="toc-Corporate_governance-sublist" class="vector-toc-list"> <li id="toc-Constitutional_separation_of_powers" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Constitutional_separation_of_powers"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.1</span> <span>Constitutional separation of powers</span> </div> </a> <ul id="toc-Constitutional_separation_of_powers-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Shareholder_rights" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Shareholder_rights"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.2</span> <span>Shareholder rights</span> </div> </a> <ul id="toc-Shareholder_rights-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Investor_rights" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Investor_rights"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.3</span> <span>Investor rights</span> </div> </a> <ul id="toc-Investor_rights-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Employees'_rights" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Employees'_rights"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.4</span> <span>Employees' 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class="vector-toc-numb">4</span> <span>Corporate finance and markets</span> </div> </a> <button aria-controls="toc-Corporate_finance_and_markets-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Corporate finance and markets subsection</span> </button> <ul id="toc-Corporate_finance_and_markets-sublist" class="vector-toc-list"> <li id="toc-Debt_finance" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Debt_finance"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.1</span> <span>Debt finance</span> </div> </a> <ul id="toc-Debt_finance-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Equity_finance" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Equity_finance"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.2</span> <span>Equity finance</span> </div> </a> <ul id="toc-Equity_finance-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Market_regulation" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Market_regulation"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.3</span> <span>Market regulation</span> </div> </a> <ul id="toc-Market_regulation-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Accounts_and_auditing" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Accounts_and_auditing"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.4</span> <span>Accounts and auditing</span> </div> </a> <ul id="toc-Accounts_and_auditing-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Mergers_and_acquisitions" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Mergers_and_acquisitions"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.5</span> <span>Mergers and acquisitions</span> </div> 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class="vector-toc-text"> <span class="vector-toc-numb">7</span> <span>Corporate law internationally</span> </div> </a> <ul id="toc-Corporate_law_internationally-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-See_also" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#See_also"> <div class="vector-toc-text"> <span class="vector-toc-numb">8</span> <span>See also</span> </div> </a> <ul id="toc-See_also-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Notes_and_citations" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Notes_and_citations"> <div class="vector-toc-text"> <span class="vector-toc-numb">9</span> <span>Notes and citations</span> </div> </a> <ul id="toc-Notes_and_citations-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-References" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#References"> <div class="vector-toc-text"> <span class="vector-toc-numb">10</span> <span>References</span> </div> </a> <ul id="toc-References-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-External_links" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#External_links"> <div class="vector-toc-text"> <span class="vector-toc-numb">11</span> <span>External links</span> </div> </a> <ul id="toc-External_links-sublist" class="vector-toc-list"> </ul> </li> </ul> </div> </div> </nav> </div> </div> <div class="mw-content-container"> <main id="content" class="mw-body"> <header class="mw-body-header vector-page-titlebar"> <nav aria-label="Contents" class="vector-toc-landmark"> <div id="vector-page-titlebar-toc" class="vector-dropdown vector-page-titlebar-toc vector-button-flush-left" > <input type="checkbox" id="vector-page-titlebar-toc-checkbox" role="button" aria-haspopup="true" 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class="vector-body" aria-labelledby="firstHeading" data-mw-ve-target-container> <div class="vector-body-before-content"> <div class="mw-indicators"> </div> <div id="siteSub" class="noprint">From Wikipedia, the free encyclopedia</div> </div> <div id="contentSub"><div id="mw-content-subtitle"></div></div> <div id="mw-content-text" class="mw-body-content"><div class="mw-content-ltr mw-parser-output" lang="en" dir="ltr"><div class="shortdescription nomobile noexcerpt noprint searchaux" style="display:none">Law that regulates corporations formed under the Companies Act 2006</div> <p class="mw-empty-elt"> </p> <figure typeof="mw:File/Thumb"><a href="/wiki/File:London_Thames_Sunset_panorama_-_Feb_2008.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/6/6e/London_Thames_Sunset_panorama_-_Feb_2008.jpg/400px-London_Thames_Sunset_panorama_-_Feb_2008.jpg" decoding="async" width="400" height="149" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/6/6e/London_Thames_Sunset_panorama_-_Feb_2008.jpg/600px-London_Thames_Sunset_panorama_-_Feb_2008.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/6/6e/London_Thames_Sunset_panorama_-_Feb_2008.jpg/800px-London_Thames_Sunset_panorama_-_Feb_2008.jpg 2x" data-file-width="13126" data-file-height="4876" /></a><figcaption>Beside the <a href="/wiki/River_Thames" title="River Thames">River Thames</a>, the <a href="/wiki/City_of_London" title="City of London">City of London</a> is a <a href="/wiki/World" title="World">global</a> financial centre. Within the <a href="/wiki/City_of_London" title="City of London">Square Mile</a>, the <a href="/wiki/London_Stock_Exchange" title="London Stock Exchange">London Stock Exchange</a> lies at the heart of the United Kingdom's <a href="/wiki/Corporation" title="Corporation">corporations</a>.</figcaption></figure> <p><b>United Kingdom company law</b> regulates <a href="/wiki/Corporations" class="mw-redirect" title="Corporations">corporations</a> formed under the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a>. Also governed by the <a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a>, the <a href="/wiki/UK_Corporate_Governance_Code" title="UK Corporate Governance Code">UK Corporate Governance Code</a>, <a href="/wiki/European_Union" title="European Union">European Union</a> <a href="/wiki/Directive_(European_Union)" title="Directive (European Union)">Directives</a> and court cases, the company is the primary <a href="/wiki/Legal" class="mw-redirect" title="Legal">legal</a> vehicle to organise and run business. Tracing their modern history to the late <a href="/wiki/Industrial_Revolution" title="Industrial Revolution">Industrial Revolution</a>, public companies now employ more people and generate more of wealth in the United Kingdom economy than any other form of organisation. The United Kingdom was the first country to draft modern corporation statutes,<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> where through a simple registration procedure any investors could incorporate, limit liability to their commercial creditors in the event of business <a href="/wiki/Insolvency" title="Insolvency">insolvency</a>, and where management was delegated to a centralised <a href="/wiki/Board_of_directors" title="Board of directors">board of directors</a>.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> An influential model within Europe, the <a href="/wiki/Commonwealth_of_Nations" title="Commonwealth of Nations">Commonwealth</a> and as an international standard setter, UK law has always given people broad freedom to design the internal company rules, so long as the mandatory minimum rights of investors under its legislation are complied with. </p><p>Company law, or <a href="/wiki/Corporate_law" title="Corporate law">corporate law</a>, can be broken down into two main fields, <a href="/wiki/Corporate_governance" title="Corporate governance">corporate governance</a> and <a href="/wiki/Corporate_finance" title="Corporate finance">corporate finance</a>. Corporate governance in the UK mediates the rights and duties among shareholders, employees, creditors and directors. Since the <a href="/wiki/Board_of_directors" title="Board of directors">board of directors</a> habitually possesses the power to manage the business under a company constitution, a central theme is what mechanisms exist to ensure directors' accountability. UK law is "shareholder friendly" in that <a href="/wiki/Shareholders" class="mw-redirect" title="Shareholders">shareholders</a>, to the exclusion of <a href="/wiki/Employees" class="mw-redirect" title="Employees">employees</a>, typically exercise sole voting rights in the general meeting. The <a href="/wiki/General_meeting" class="mw-redirect" title="General meeting">general meeting</a> holds a series of minimum rights to change the company constitution, issue resolutions and remove members of the board. In turn, directors owe a set of <a href="/wiki/Directors%27_duties" title="Directors' duties">duties</a> to their companies. Directors must carry out their responsibilities with competence, in <a href="/wiki/Good_faith" title="Good faith">good faith</a> and undivided loyalty to the enterprise. If the mechanisms of voting do not prove enough, particularly for minority shareholders, directors' duties and other member rights may be vindicated in court. Of central importance in public and listed companies is the securities market, typified by the <a href="/wiki/London_Stock_Exchange" title="London Stock Exchange">London Stock Exchange</a>. Through the <a href="/wiki/Takeover_Code" class="mw-redirect" title="Takeover Code">Takeover Code</a> the UK strongly protects the right of shareholders to be treated equally and freely trade their shares. </p><p>Corporate finance concerns the two money raising options for limited companies. <a href="/wiki/Equity_(finance)" title="Equity (finance)">Equity finance</a> involves the traditional method of issuing <a href="/wiki/Share_(finance)" title="Share (finance)">shares</a> to build up a company's <a href="/wiki/Capital_(economics)" title="Capital (economics)">capital</a>. Shares can contain any rights the company and purchaser wish to contract for, but generally grant the right to participate in <a href="/wiki/Dividend" title="Dividend">dividends</a> after a company earns profits and the right to <a href="/wiki/Vote" class="mw-redirect" title="Vote">vote</a> in company affairs. A purchaser of shares is helped to make an informed decision directly by <a href="/wiki/Prospectus_(finance)" title="Prospectus (finance)">prospectus</a> requirements of full <a href="/wiki/Corporation#Financial_disclosure" title="Corporation">disclosure</a>, and indirectly through restrictions on <a href="/wiki/Financial_assistance_(share_purchase)" title="Financial assistance (share purchase)">financial assistance</a> by companies for purchase of their own shares. <a href="/wiki/Debt_finance" class="mw-redirect" title="Debt finance">Debt finance</a> means getting loans, usually for the price of a fixed annual <a href="/wiki/Interest" title="Interest">interest</a> repayment. Sophisticated lenders, such as <a href="/wiki/Bank" title="Bank">banks</a> typically contract for a <a href="/wiki/Security_interest" title="Security interest">security interest</a> over the assets of a company, so that in the event of default on loan repayments they may seize the company's property directly to satisfy debts. Creditors are also, to some extent, protected by courts' power to set aside unfair transactions before a company goes under, or recoup money from negligent directors engaged in <a href="/wiki/Wrongful_trading" title="Wrongful trading">wrongful trading</a>. If a company is unable to pay its debts as they fall due, <a href="/wiki/UK_insolvency_law" class="mw-redirect" title="UK insolvency law">UK insolvency law</a> requires an <a href="/wiki/Administration_(law)" title="Administration (law)">administrator</a> to attempt a rescue of the company (if the company itself has the assets to pay for this). If rescue proves impossible, a company's life ends when its assets are liquidated, distributed to creditors and the company is struck off the register. If a company becomes insolvent with no assets it can be wound up by a creditor, for a fee (not that common), or more commonly by the tax creditor (HMRC). </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="History">History</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=1" title="Edit section: History"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1236090951">.mw-parser-output .hatnote{font-style:italic}.mw-parser-output div.hatnote{padding-left:1.6em;margin-bottom:0.5em}.mw-parser-output .hatnote i{font-style:normal}.mw-parser-output .hatnote+link+.hatnote{margin-top:-0.5em}@media print{body.ns-0 .mw-parser-output .hatnote{display:none!important}}</style><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/History_of_company_law" class="mw-redirect" title="History of company law">History of company law</a> and <a href="/wiki/History_of_company_law_in_the_United_Kingdom" title="History of company law in the United Kingdom">History of company law in the United Kingdom</a></div> <figure class="mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Ships_Trading_in_the_East.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/1/1c/Ships_Trading_in_the_East.jpg/300px-Ships_Trading_in_the_East.jpg" decoding="async" width="300" height="198" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/1/1c/Ships_Trading_in_the_East.jpg/450px-Ships_Trading_in_the_East.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/1/1c/Ships_Trading_in_the_East.jpg/600px-Ships_Trading_in_the_East.jpg 2x" data-file-width="1280" data-file-height="844" /></a><figcaption><a href="/wiki/Hendrick_Cornelisz_Vroom" title="Hendrick Cornelisz Vroom">Hendrick Cornelisz Vroom</a>'s depiction in 1614 of competing <a href="/wiki/British_East_India_Company" class="mw-redirect" title="British East India Company">British East India Company</a> and <a href="/wiki/Dutch_East_India_Company" title="Dutch East India Company">Dutch East India Company</a> ships, both with monopolies to trade. Other chartered corporations, still in existence include the <a href="/wiki/Hudson%27s_Bay_Company" title="Hudson's Bay Company">Hudson's Bay Company</a> (est 1670) and the <a href="/wiki/Bank_of_England" title="Bank of England">Bank of England</a> (est 1694).</figcaption></figure> <p>Company law in its modern shape dates from the mid-19th century; however, an array of business associations developed long before. In medieval times, traders would do business through <a href="/wiki/Common_law" title="Common law">common law</a> constructs, such as <a href="/wiki/Partnership" title="Partnership">partnerships</a>. Whenever people acted together with a view to <a href="/wiki/Profit_(economics)" title="Profit (economics)">profit</a>, the law deemed that a partnership arose. Early <a href="/wiki/Guilds" class="mw-redirect" title="Guilds">guilds</a> and <a href="/wiki/Livery_companies" class="mw-redirect" title="Livery companies">livery companies</a> were also often involved in the <a href="/wiki/Restraint_of_trade" title="Restraint of trade">regulation of competition</a> between traders. As England sought to build a <a href="/wiki/Mercantilism" title="Mercantilism">mercantile</a> <a href="/wiki/British_Empire" title="British Empire">Empire</a>, the government created corporations under a <a href="/wiki/Royal_Charter" class="mw-redirect" title="Royal Charter">Royal Charter</a> or an <a href="/wiki/Act_of_Parliament" class="mw-redirect" title="Act of Parliament">Act of Parliament</a> with the grant of a <a href="/wiki/Monopoly" title="Monopoly">monopoly</a> over a specified territory. The best-known example, established in 1600, was the <a href="/wiki/British_East_India_Company" class="mw-redirect" title="British East India Company">British East India Company</a>. <a href="/wiki/Queen_Elizabeth_I" class="mw-redirect" title="Queen Elizabeth I">Queen Elizabeth I</a> granted it the exclusive right to trade with all countries to the east of the <a href="/wiki/Cape_of_Good_Hope" title="Cape of Good Hope">Cape of Good Hope</a>. Corporations at this time would essentially act on the government's behalf, bringing in revenue from its exploits abroad. Subsequently, the company became <a href="/wiki/Company_rule_in_India" title="Company rule in India">increasingly integrated</a> with British military and colonial policy, just as most UK corporations were essentially dependent on the British navy's ability to control trade routes on the <a href="/wiki/High_seas" class="mw-redirect" title="High seas">high seas</a>. </p> <style data-mw-deduplicate="TemplateStyles:r1224211176">.mw-parser-output .quotebox{background-color:#F9F9F9;border:1px solid #aaa;box-sizing:border-box;padding:10px;font-size:88%;max-width:100%}.mw-parser-output .quotebox.floatleft{margin:.5em 1.4em .8em 0}.mw-parser-output .quotebox.floatright{margin:.5em 0 .8em 1.4em}.mw-parser-output .quotebox.centered{overflow:hidden;position:relative;margin:.5em auto .8em auto}.mw-parser-output .quotebox.floatleft span,.mw-parser-output .quotebox.floatright span{font-style:inherit}.mw-parser-output .quotebox>blockquote{margin:0;padding:0;border-left:0;font-family:inherit;font-size:inherit}.mw-parser-output .quotebox-title{text-align:center;font-size:110%;font-weight:bold}.mw-parser-output .quotebox-quote>:first-child{margin-top:0}.mw-parser-output .quotebox-quote:last-child>:last-child{margin-bottom:0}.mw-parser-output .quotebox-quote.quoted:before{font-family:"Times New Roman",serif;font-weight:bold;font-size:large;color:gray;content:" “ ";vertical-align:-45%;line-height:0}.mw-parser-output .quotebox-quote.quoted:after{font-family:"Times New Roman",serif;font-weight:bold;font-size:large;color:gray;content:" ” ";line-height:0}.mw-parser-output .quotebox .left-aligned{text-align:left}.mw-parser-output .quotebox .right-aligned{text-align:right}.mw-parser-output .quotebox .center-aligned{text-align:center}.mw-parser-output .quotebox .quote-title,.mw-parser-output .quotebox .quotebox-quote{display:block}.mw-parser-output .quotebox cite{display:block;font-style:normal}@media screen and (max-width:640px){.mw-parser-output .quotebox{width:100%!important;margin:0 0 .8em!important;float:none!important}}</style><div class="quotebox pullquote floatright" style="width:22em; ; color: #202122;background-color: #c6dbf7;"> <blockquote class="quotebox-quote left-aligned" style=""> <p>"The directors of such companies, however, being the managers rather of <a href="/wiki/Other_people%E2%80%99s_money" class="mw-redirect" title="Other people’s money">other people's money</a> than of their own, it cannot well be expected, that they should watch over it with the same anxious vigilance with which the partners in a private copartnery frequently watch over their own. Like the stewards of a rich man, they are apt to consider attention to small matters as not for their master's honour, and very easily give themselves a dispensation from having it. Negligence and profusion, therefore, must always prevail, more or less, in the management of the affairs of such a company. It is upon this account, that joint-stock companies for foreign trade have seldom been able to maintain the competition against private adventurers." </p> </blockquote> <div style="padding-bottom: 0; padding-top: 0.5em"><cite class="right-aligned" style=""><a href="/wiki/Adam_Smith" title="Adam Smith">A Smith</a>, <i><a href="/wiki/An_Inquiry_into_the_Nature_and_Causes_of_the_Wealth_of_Nations" class="mw-redirect" title="An Inquiry into the Nature and Causes of the Wealth of Nations">An Inquiry into the Nature and Causes of the Wealth of Nations</a></i> (1776) <a rel="nofollow" class="external text" href="http://oll.libertyfund.org/titles/smith-an-inquiry-into-the-nature-and-causes-of-the-wealth-of-nations-cannan-ed-vol-2#Smith_0206-02_591">Book V, ch 1, §107</a></cite></div> </div> <p>A similar <a href="/wiki/Chartered_company" title="Chartered company">chartered company</a>, the <a href="/wiki/South_Sea_Company" title="South Sea Company">South Sea Company</a>, was established in 1711 to trade in the Spanish South American colonies, but met with less success. The South Sea Company's monopoly rights were supposedly backed by the <a href="/wiki/Treaty_of_Utrecht" class="mw-redirect" title="Treaty of Utrecht">Treaty of Utrecht</a>, signed in 1713 as a settlement following the <a href="/wiki/War_of_Spanish_Succession" class="mw-redirect" title="War of Spanish Succession">War of Spanish Succession</a>, which gave the United Kingdom an <i><a href="/wiki/Assiento" class="mw-redirect" title="Assiento">assiento</a></i> to trade, and to <a href="/wiki/Slavery_in_Britain_and_Ireland" class="mw-redirect" title="Slavery in Britain and Ireland">sell slaves</a> in the region for thirty years. In fact the Spanish remained hostile and let only one ship a year enter. Unaware of the problems, investors in the UK, enticed by <a href="/wiki/Company_promoters" class="mw-redirect" title="Company promoters">company promoters</a>' extravagant promises of profit, bought thousands of shares. By 1717, the South Sea Company was so wealthy (still having done no real business) that it assumed the <a href="/wiki/Public_debt" class="mw-redirect" title="Public debt">public debt</a> of the UK government. This accelerated the inflation of the share price further, as did the <a href="/wiki/Royal_Exchange_and_London_Assurance_Corporation_Act_1719" class="mw-redirect" title="Royal Exchange and London Assurance Corporation Act 1719">Royal Exchange and London Assurance Corporation Act 1719</a>, which (possibly with the motive of protecting the South Sea Company from competition) prohibited the establishment of any companies without a Royal Charter. The share price rose so rapidly that people began buying shares merely in order to sell them at a higher price. By inflating demand this in turn led to higher share prices. The "South Sea bubble" was the first <a href="/wiki/Speculative_bubble" class="mw-redirect" title="Speculative bubble">speculative bubble</a> the country had seen, but by the end of 1720, the bubble had "burst", and the share price sank from £1000 to under £100. As bankruptcies and recriminations ricocheted through government and high society, the mood against corporations, and errant directors, was bitter. Even in 1776, <a href="/wiki/Adam_Smith" title="Adam Smith">Adam Smith</a> wrote in the <i><a href="/wiki/Wealth_of_Nations" class="mw-redirect" title="Wealth of Nations">Wealth of Nations</a></i> that mass corporate activity could not match private entrepreneurship, because people in charge of "other people's money" would not exercise as much care as they would with their own.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Robert_Lowe,_1st_Viscount_Sherbrooke_by_George_Frederic_Watts.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/9/9a/Robert_Lowe%2C_1st_Viscount_Sherbrooke_by_George_Frederic_Watts.jpg/220px-Robert_Lowe%2C_1st_Viscount_Sherbrooke_by_George_Frederic_Watts.jpg" decoding="async" width="220" height="278" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/9/9a/Robert_Lowe%2C_1st_Viscount_Sherbrooke_by_George_Frederic_Watts.jpg/330px-Robert_Lowe%2C_1st_Viscount_Sherbrooke_by_George_Frederic_Watts.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/9/9a/Robert_Lowe%2C_1st_Viscount_Sherbrooke_by_George_Frederic_Watts.jpg/440px-Robert_Lowe%2C_1st_Viscount_Sherbrooke_by_George_Frederic_Watts.jpg 2x" data-file-width="2400" data-file-height="3030" /></a><figcaption><a href="/wiki/Robert_Lowe" title="Robert Lowe">Robert Lowe</a>, then Vice President of the <a href="/wiki/Board_of_Trade" title="Board of Trade">Board of Trade</a> has been dubbed the "father of modern company law" for his role in drafting the <a href="/wiki/Joint_Stock_Companies_Act_1856" title="Joint Stock Companies Act 1856">1856 reforms</a>.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup></figcaption></figure> <p>The <a href="/wiki/Bubble_Act_1720" class="mw-redirect" title="Bubble Act 1720">Bubble Act 1720</a>'s prohibition on establishing companies remained in force until 1825. By this point the <a href="/wiki/Industrial_Revolution" title="Industrial Revolution">Industrial Revolution</a> had gathered pace, pressing for legal change to facilitate business activity. Restrictions were gradually lifted on ordinary people incorporating,<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> though businesses such as those chronicled by <a href="/wiki/Charles_Dickens" title="Charles Dickens">Charles Dickens</a> in <i><a href="/wiki/Martin_Chuzzlewit" title="Martin Chuzzlewit">Martin Chuzzlewit</a></i> under primitive companies legislation were often scams. Without cohesive regulation, undercapitalised ventures like the proverbial "Anglo-Bengalee Disinterested Loan and Life Assurance Company" promised no hope of success, except for richly remunerated promoters.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> Then in 1843, <a href="/wiki/William_Ewart_Gladstone" title="William Ewart Gladstone">William Gladstone</a> took chairmanship of a Parliamentary Committee on Joint Stock Companies, which led to the <a href="/wiki/Joint_Stock_Companies_Act_1844" title="Joint Stock Companies Act 1844">Joint Stock Companies Act 1844</a>.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> For the first time it was possible for ordinary people through a simple registration procedure to incorporate. The advantage of establishing a company as a <a href="/wiki/Separate_legal_person" class="mw-redirect" title="Separate legal person">separate legal person</a> was mainly administrative, as a unified entity under which the rights and duties of all investors and managers could be channeled. The most important development came through the <a href="/wiki/Limited_Liability_Act_1855" title="Limited Liability Act 1855">Limited Liability Act 1855</a>, which allowed investors to limit their liability in the event of business failure to the amount they invested in the company. These two features - a simple registration procedure and limited liability - were subsequently codified in the world's first modern company law, the <a href="/wiki/Joint_Stock_Companies_Act_1856" title="Joint Stock Companies Act 1856">Joint Stock Companies Act 1856</a>. A series of <a href="/wiki/Companies_Acts" class="mw-redirect" title="Companies Acts">Companies Acts</a> up to the present <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> have essentially retained the same fundamental features. </p><p>Over the 20th century, companies in the UK became the dominant organisational form of economic activity, which raised concerns about how accountable those who controlled companies were to those who invested in them. The first reforms following the Great Depression, in the <a href="/wiki/Companies_Act_1948" title="Companies Act 1948">Companies Act 1948</a>, ensured that directors could be removed by shareholders with a simple majority <a href="/wiki/Vote" class="mw-redirect" title="Vote">vote</a>. In 1977, the government's <a href="/wiki/Bullock_Report" class="mw-redirect" title="Bullock Report">Bullock Report</a> proposed reform to allow employees to participate in selecting the <a href="/wiki/Board_of_directors" title="Board of directors">board of directors</a>, as was happening across Europe, exemplified by the German <a href="/wiki/Codetermination_Act_1976" class="mw-redirect" title="Codetermination Act 1976">Codetermination Act 1976</a>. However the UK never implemented the reforms, and from 1979 the debate shifted. Although making directors more accountable to employees was delayed, the <a href="/wiki/Cork_Report" class="mw-redirect" title="Cork Report">Cork Report</a> led to stiffer sanctions in the <a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a> and the <a href="/wiki/Company_Directors_Disqualification_Act_1986" title="Company Directors Disqualification Act 1986">Company Directors Disqualification Act 1986</a> against directors who negligently ran companies at a loss. Through the 1990s the focus in <a href="/wiki/Corporate_governance" title="Corporate governance">corporate governance</a> turned toward internal control mechanisms, such as auditing, separation of the chief executive position from the chair, and remuneration committees as an attempt to place some check on excessive <a href="/wiki/Executive_pay" class="mw-redirect" title="Executive pay">executive pay</a>. These rules applicable to listed companies, now found in the <a href="/wiki/UK_Corporate_Governance_Code" title="UK Corporate Governance Code">UK Corporate Governance Code</a>, have been complemented by principles based regulation of <a href="/wiki/Institutional_investors" class="mw-redirect" title="Institutional investors">institutional investors</a>' activity in company affairs. At the same time, the UK's integration in the <a href="/wiki/European_Union" title="European Union">European Union</a> meant a steadily growing body of <a href="/wiki/European_company_law" title="European company law">EU Company Law Directives</a> and case law to harmonise company law within the internal market.<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Companies_and_the_general_law">Companies and the general law</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=2" title="Edit section: Companies and the general law"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/UK_partnership_law" class="mw-redirect" title="UK partnership law">UK partnership law</a>, <a href="/wiki/English_trust_law" title="English trust law">English trust law</a>, <a href="/wiki/English_contract_law" title="English contract law">English contract law</a>, <a href="/wiki/English_tort_law" title="English tort law">English tort law</a>, and <a href="/wiki/English_unjust_enrichment" class="mw-redirect" title="English unjust enrichment">English unjust enrichment</a></div> <p>Companies occupy a special place in private law since they have a <a href="/wiki/Legal_personality" class="mw-redirect" title="Legal personality">legal personality</a> separate from those who invest their capital and labour to run the business. The general rules of contract, tort and unjust enrichment operate in the first place against the company as a distinct entity. This differs fundamentally from other forms of <a href="/wiki/Companies_law" class="mw-redirect" title="Companies law">business association</a>. A <a href="/wiki/Sole_trader" class="mw-redirect" title="Sole trader">sole trader</a> acquires rights and duties as normal under the general law of obligations. If people carry on business together with a view to profit, they are deemed to have formed a partnership under the <a href="/wiki/Partnership_Act_1890" title="Partnership Act 1890">Partnership Act 1890</a> section 1. Like a sole trader, partners will be liable on any contract or tort obligation <a href="/wiki/Joint_and_several_liability" title="Joint and several liability">jointly and severally</a> in shares equal to their monetary contribution, or according to their culpability. <a href="/wiki/Law_firm" title="Law firm">Law</a>, <a href="/wiki/Accountancy" class="mw-redirect" title="Accountancy">accountancy</a> and <a href="/wiki/Actuarial" class="mw-redirect" title="Actuarial">actuarial</a> firms are commonly organised as partnerships. Since the <a href="/wiki/Limited_Liability_Partnerships_Act_2000" title="Limited Liability Partnerships Act 2000">Limited Liability Partnerships Act 2000</a>, partners can limit the amount they are liable for to their monetary investment in the business, if the partnership owes more money than the enterprise has. Outside these professions, however, the most common method for businesses to limit their liability is by forming a company. </p> <div class="mw-heading mw-heading3"><h3 id="Forming_a_company">Forming a company</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=3" title="Edit section: Forming a company"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main articles: <a href="/wiki/Company_formation" title="Company formation">Company formation</a> and <a href="/wiki/Incorporation_(business)" title="Incorporation (business)">Incorporation (business)</a></div> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Gherkin_stitch.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/4/4d/Gherkin_stitch.jpg/220px-Gherkin_stitch.jpg" decoding="async" width="220" height="165" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/4/4d/Gherkin_stitch.jpg/330px-Gherkin_stitch.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/4/4d/Gherkin_stitch.jpg/440px-Gherkin_stitch.jpg 2x" data-file-width="6592" data-file-height="4944" /></a><figcaption>Companies employ over half the workers in the UK, and turn over more than £2,500 billion.</figcaption></figure> <p>A variety of companies may be <a href="/wiki/Incorporation_(business)" title="Incorporation (business)">incorporated</a> under the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a>. The people interested in starting the enterprise - the prospective directors, employees and shareholders - may choose, firstly, an unlimited or a limited company. "<a href="/wiki/Unlimited_company" title="Unlimited company">Unlimited</a>" will mean the incorporators will be liable for all losses and debts under the general principles of private law.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> The option of a limited company leads to a second choice. A company can be "<a href="/wiki/Company_limited_by_guarantee" title="Company limited by guarantee">limited by guarantee</a>", meaning that if the company owes more debts than it can pay, the guarantors' liability will be limited to the extent of the money they elect to guarantee. Or a company may choose to be "limited by shares", meaning capital investors' liability is limited to the amount they subscribe for in share capital.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> A third choice is whether a company limited by shares will be public or private.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> Both kinds of companies must display (partly as a warning) the endings "plc" or "Ltd" following the company name.<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> Most new businesses will opt for a <a href="/wiki/Private_company_limited_by_shares" title="Private company limited by shares">private company limited by shares</a>, while unlimited companies<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> and companies limited by guarantee are typically chosen by either charities, risky ventures or mutual funds wanting to signal they will not leave debts unpaid. Charitable ventures also have the option to become a <a href="/wiki/Community_interest_company" title="Community interest company">community interest company</a>.<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> <a href="/wiki/Public_limited_company" title="Public limited company">Public companies</a> are the predominant business vehicle in the UK economy. While far less numerous than private companies, they employ the overwhelming mass of British workers and turn over the greatest share of wealth. Public companies can offer shares to the public, must have a <a href="/wiki/Minimum_capital" title="Minimum capital">minimum capital</a> of £50,000, must allow free transferability of its shares, and typically (as most big public companies will be listed) will follow requirements of the <a href="/wiki/London_Stock_Exchange" title="London Stock Exchange">London Stock Exchange</a> or a similar securities market.<sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup> Businesses may also elect to incorporate under the <a href="/wiki/European_Company_Statute" class="mw-redirect" title="European Company Statute">European Company Statute</a> as a <a href="/wiki/Societas_Europaea" title="Societas Europaea">Societas Europaea</a>. An "SE" will be treated in every <a href="/wiki/European_Union" title="European Union">European Union</a> member state as if it were a public company formed in accordance with the law of that state,<sup id="cite_ref-16" class="reference"><a href="#cite_note-16"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> and may opt in or out of <a href="/wiki/Codetermination" class="mw-redirect" title="Codetermination">employee involvement</a>.<sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> </p><p>Once the decision has been made about the type of company, <a href="/wiki/Company_formation" title="Company formation">formation</a> occurs through a series of procedures with the registrar at <a href="/wiki/Companies_House" title="Companies House">Companies House</a>.<sup id="cite_ref-18" class="reference"><a href="#cite_note-18"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> Before registration, anybody <a href="/wiki/Company_promoter" class="mw-redirect" title="Company promoter">promoting</a> the company to attract investment falls under strict <a href="/wiki/Fiduciary" title="Fiduciary">fiduciary</a> duties to disclose all material facts about the venture and its finances.<sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> Moreover, anybody purporting to contract in a company's name before its registration will generally be personally liable on those obligations.<sup id="cite_ref-20" class="reference"><a href="#cite_note-20"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> In the registration process, those who invest money in a company will sign a <a href="/wiki/Memorandum_of_association" title="Memorandum of association">memorandum of association</a> stating what shares they will initially take, and pledge their compliance with the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a>.<sup id="cite_ref-21" class="reference"><a href="#cite_note-21"><span class="cite-bracket">[</span>21<span class="cite-bracket">]</span></a></sup> A standard company constitution, known as the <a href="/wiki/Model_Articles" class="mw-redirect" title="Model Articles">Model Articles</a>, is deemed to apply,<sup id="cite_ref-22" class="reference"><a href="#cite_note-22"><span class="cite-bracket">[</span>22<span class="cite-bracket">]</span></a></sup> or the corporators may register their own individualised <a href="/wiki/Articles_of_association" title="Articles of association">articles of association</a>. Directors must be appointed - one in a private company and at least two in a public company - and a public company must have a secretary, but there needs to be no more than a single member.<sup id="cite_ref-23" class="reference"><a href="#cite_note-23"><span class="cite-bracket">[</span>23<span class="cite-bracket">]</span></a></sup> The company will be refused registration if it is set up for an unlawful purpose, and a name must be chosen that is not inappropriate or already in use.<sup id="cite_ref-24" class="reference"><a href="#cite_note-24"><span class="cite-bracket">[</span>24<span class="cite-bracket">]</span></a></sup> This information is filled out in a form available on the Companies House website. In 2018, a £12 fee was paid for online registration when <a href="/wiki/Model_Articles" class="mw-redirect" title="Model Articles">Model Articles</a> are adopted, or a £40 for postal registration using the "IN01" form.<sup id="cite_ref-25" class="reference"><a href="#cite_note-25"><span class="cite-bracket">[</span>25<span class="cite-bracket">]</span></a></sup> The registrar then issues a certificate of incorporation and a new legal personality enters the stage. </p> <div class="mw-heading mw-heading3"><h3 id="Corporate_personality">Corporate personality</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=4" title="Edit section: Corporate personality"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Separate_legal_personality" class="mw-redirect" title="Separate legal personality">Separate legal personality</a> and <a href="/wiki/Limited_liability" title="Limited liability">Limited liability</a></div> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Temple-bar-griffin.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/e/e5/Temple-bar-griffin.jpg/220px-Temple-bar-griffin.jpg" decoding="async" width="220" height="323" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/e/e5/Temple-bar-griffin.jpg/330px-Temple-bar-griffin.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/e/e5/Temple-bar-griffin.jpg/440px-Temple-bar-griffin.jpg 2x" data-file-width="500" data-file-height="733" /></a><figcaption>The <a href="/wiki/Corporation_of_London" class="mw-redirect" title="Corporation of London">Corporation of London</a>, which governs the <a href="/wiki/City_of_London" title="City of London">Square Mile</a> from the Griffin at <a href="/wiki/Temple_Bar,_London" title="Temple Bar, London">Temple Bar</a> to the <a href="/wiki/Tower_of_London" title="Tower of London">Tower of London</a>, is an early example of a separate legal person.</figcaption></figure> <p>English law recognised long ago that a corporation would have "legal personality". Legal personality simply means the entity is the subject of legal rights and duties. It can sue and be sued. Historically, municipal councils (such as the <a href="/wiki/Corporation_of_London" class="mw-redirect" title="Corporation of London">Corporation of London</a>) or charitable establishments would be the primary examples of corporations. In 1612, <a href="/wiki/Sir_Edward_Coke" class="mw-redirect" title="Sir Edward Coke">Sir Edward Coke</a> remarked in the <i><a href="/wiki/Case_of_Sutton%27s_Hospital" title="Case of Sutton's Hospital">Case of Sutton's Hospital</a></i>,<sup id="cite_ref-26" class="reference"><a href="#cite_note-26"><span class="cite-bracket">[</span>26<span class="cite-bracket">]</span></a></sup> </p> <blockquote><p>the Corporation itself is onely <i>in abstracto</i>, and resteth onely in intendment and consideration of the <a href="/wiki/Law" title="Law">Law</a>; for a Corporation aggregate of many is <a href="/wiki/Invisible" class="mw-redirect" title="Invisible">invisible</a>, <a href="/wiki/Immortality" title="Immortality">immortal</a>, & resteth only in intendment and consideration of the Law; and therefore it cannot have predecessor nor successor. They may not commit <a href="/wiki/Treason" title="Treason">treason</a>, nor be outlawed, nor <a href="/wiki/Excommunicate" class="mw-redirect" title="Excommunicate">excommunicate</a>, for they have no <a href="/wiki/Soul" title="Soul">souls</a>, neither can they appear in person, but by <a href="/wiki/Lawyer" title="Lawyer">Attorney</a>. A Corporation aggregate of many cannot do <a href="/wiki/Fealty" title="Fealty">fealty</a>, for an invisible body cannot be in person, nor can swear, it is not subject to imbecilities, or death of the natural, <a href="/wiki/Human_body" title="Human body">body</a>, and divers other cases.</p></blockquote> <p>Without a body to be kicked or a soul to be damned, a corporation does not itself suffer penalties administered by courts, but those who stand to lose their investments will. A company will, as a separate person, be the first liable entity for any obligations its directors and employees create on its behalf.<sup id="cite_ref-27" class="reference"><a href="#cite_note-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup> If a company does not have enough assets to pay its debts as they fall due, it will be <a href="/wiki/Insolvent" class="mw-redirect" title="Insolvent">insolvent</a> - bankrupt. Unless an <a href="/wiki/Administration_(law)" title="Administration (law)">administrator</a> (someone like an auditing firm partner, usually appointed by creditors on a company's insolvency) is able to rescue the business, shareholders will lose their money, employees will lose their <a href="/wiki/Employment" title="Employment">jobs</a> and a <a href="/wiki/Liquidator_(law)" title="Liquidator (law)">liquidator</a> will be appointed to sell off any remaining assets to distribute as much as possible to unpaid creditors. Yet if business remains successful, a company can persist <a href="/wiki/Eternity" title="Eternity">forever</a>,<sup id="cite_ref-28" class="reference"><a href="#cite_note-28"><span class="cite-bracket">[</span>28<span class="cite-bracket">]</span></a></sup> even as the natural people who invest in it and carry out its business change or pass away. </p><p>Most companies adopt <a href="/wiki/Limited_liability" title="Limited liability">limited liability</a> for their members, seen in the suffix of "<a href="/wiki/Limited_company" title="Limited company">Ltd</a>" or "<a href="/wiki/Public_limited_company" title="Public limited company">plc</a>". This means that if a company does go insolvent, unpaid <a href="/wiki/Creditor" title="Creditor">creditors</a> cannot (generally) seek contributions from the company's shareholders and employees, even if shareholders and employees profited handsomely before a company's fortunes declined or would bear primary responsibility for the losses under ordinary civil law principles. The liability of a company <i>itself</i> is unlimited (companies have to pay all they owe with the assets they have), but the liability of those who invest their capital in a company is (generally) limited to their shares, and those who invest their labour can only lose their jobs.<sup id="cite_ref-29" class="reference"><a href="#cite_note-29"><span class="cite-bracket">[</span>29<span class="cite-bracket">]</span></a></sup> However, limited liability acts merely as a default position. It can be "contracted around", provided creditors have the opportunity and the <a href="/wiki/Bargaining_power" title="Bargaining power">bargaining power</a> to do so.<sup id="cite_ref-30" class="reference"><a href="#cite_note-30"><span class="cite-bracket">[</span>30<span class="cite-bracket">]</span></a></sup> A bank, for instance, may not lend to a small company unless the company's director gives his own house as <a href="/wiki/Security_interest" title="Security interest">security</a> for the loan (e.g., by <a href="/wiki/Mortgage_loan" class="mw-redirect" title="Mortgage loan">mortgage</a>). Just as it is possible for two contracting parties to stipulate in an agreement that one's liability will be limited in the event of <a href="/wiki/Breach_of_contract" title="Breach of contract">contractual breach</a>, the default position for companies can be switched back so that shareholders or directors do agree to pay off all debts. If a company's investors do not do this, so their limited liability is not "contracted around", their assets will (generally) be protected from claims of creditors. The assets are beyond reach behind the metaphorical "veil of incorporation". </p> <div class="mw-heading mw-heading3"><h3 id="Rules_of_attribution">Rules of attribution</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=5" title="Edit section: Rules of attribution"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Attribution_of_liability_to_United_Kingdom_companies" title="Attribution of liability to United Kingdom companies">Attribution of liability to United Kingdom companies</a>, <a href="/wiki/Capacity_in_English_law" title="Capacity in English law">Capacity in English law</a>, <a href="/wiki/Agency_in_English_law" title="Agency in English law">Agency in English law</a>, and <a href="/wiki/Vicarious_liability_in_English_law" title="Vicarious liability in English law">Vicarious liability in English law</a></div> <div class="navbox-styles"><style data-mw-deduplicate="TemplateStyles:r1129693374">.mw-parser-output .hlist dl,.mw-parser-output .hlist ol,.mw-parser-output .hlist ul{margin:0;padding:0}.mw-parser-output .hlist dd,.mw-parser-output .hlist dt,.mw-parser-output .hlist li{margin:0;display:inline}.mw-parser-output .hlist.inline,.mw-parser-output .hlist.inline dl,.mw-parser-output .hlist.inline ol,.mw-parser-output .hlist.inline ul,.mw-parser-output .hlist dl dl,.mw-parser-output .hlist dl ol,.mw-parser-output .hlist dl ul,.mw-parser-output .hlist ol dl,.mw-parser-output .hlist ol ol,.mw-parser-output .hlist ol ul,.mw-parser-output .hlist ul dl,.mw-parser-output .hlist ul ol,.mw-parser-output .hlist ul ul{display:inline}.mw-parser-output .hlist .mw-empty-li{display:none}.mw-parser-output .hlist dt::after{content:": "}.mw-parser-output .hlist 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mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 7em}.mw-parser-output .navbar-ct-mini{font-size:114%;margin:0 4em}html.skin-theme-clientpref-night .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}@media(prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}}@media print{.mw-parser-output .navbar{display:none!important}}</style><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_co_capacity" title="Template:Clist co capacity"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_co_capacity" title="Template talk:Clist co capacity"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_co_capacity" title="Special:EditPage/Template:Clist co capacity"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Company_liability_cases" style="font-size:114%;margin:0 4em">Company liability cases</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Royal_British_Bank_v_Turquand" title="Royal British Bank v Turquand">Royal British Bank v Turquand</a></i> (1856) 6 E&B 327</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Ashbury_Railway_Carriage_Ltd_v_Riche" class="mw-redirect" title="Ashbury Railway Carriage Ltd v Riche">Ashbury Railway Carriage Ltd v Riche</a></i> (1875) LR 7 HL 653</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Hutton_v_West_Cork_Railway_Co" class="mw-redirect" title="Hutton v West Cork Railway Co">Hutton v West Cork Railway Co</a></i> (1883) 39 Ch D 156</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Rolled_Steel_Ltd_v_British_Steel_Corp" class="mw-redirect" title="Rolled Steel Ltd v British Steel Corp">Rolled Steel Ltd v British Steel Corp</a></i> [1985] Ch 246</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 39-41</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Freeman_and_Lockyer_v_Buckhurst_Park_Ltd" class="mw-redirect" title="Freeman and Lockyer v Buckhurst Park Ltd"><span class="wrap">Freeman and Lockyer v Buckhurst Park Ltd</span></a></i> [1964] 2 QB 480</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Hely-Hutchinson_v_Brayhead_Ltd" title="Hely-Hutchinson v Brayhead Ltd">Hely-Hutchinson v Brayhead Ltd</a></i> [1968] 1 QB 549</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Panorama_Ltd_v_Fidelis_Furnishing_Fabrics_Ltd" class="mw-redirect" title="Panorama Ltd v Fidelis Furnishing Fabrics Ltd"><span class="wrap">Panorama Ltd v Fidelis Furnishing Fabrics Ltd</span></a></i> [1971] 2 QB 711</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Meridian_Global_Funds_Management_Asia_Ltd_v_Securities_Commission" title="Meridian Global Funds Management Asia Ltd v Securities Commission"><span class="wrap">Meridian Global Ltd v Securities Commission</span></a></i> [1995] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKPC/1995/5.html">UKPC 5</a></div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/wiki/UK_company_law" class="mw-redirect" title="UK company law">UK company law</a></div></td></tr></tbody></table></div> <p>While a limited company is deemed to be a legal person separate from its shareholders and employees, as a matter of fact, a company can only act through its employees, from the board of directors down. So there must be rules to attribute rights and duties to a company from its actors.<sup id="cite_ref-31" class="reference"><a href="#cite_note-31"><span class="cite-bracket">[</span>31<span class="cite-bracket">]</span></a></sup> This usually matters because an aggrieved third party will want to sue whoever has money to pay for breach of an obligation,<sup id="cite_ref-32" class="reference"><a href="#cite_note-32"><span class="cite-bracket">[</span>32<span class="cite-bracket">]</span></a></sup> and companies rather than their employees often have more money. Up until reforms in 2006 this area used to be complicated significantly by the requirement on companies to specify an <a href="/wiki/Objects_clause" title="Objects clause">objects clause</a> for their business, for instance "to make and sell, or lend on hire, railway-carriages". If companies acted outside their objects, for instance by giving a <a href="/wiki/Loan" title="Loan">loan</a> to build railways in Belgium, any such contracts were said to be <i><a href="/wiki/Ultra_vires" title="Ultra vires">ultra vires</a></i> and consequently void. This is what happened in the early case of <i><a href="/wiki/Ashbury_Railway_Carriage_and_Iron_Co_Ltd_v_Riche" class="mw-redirect" title="Ashbury Railway Carriage and Iron Co Ltd v Riche">Ashbury Railway Carriage and Iron Co Ltd v Riche</a></i>.<sup id="cite_ref-33" class="reference"><a href="#cite_note-33"><span class="cite-bracket">[</span>33<span class="cite-bracket">]</span></a></sup> The policy was thought to protect shareholders and creditors, whose investments or credit would not be used for an unanticipated purpose. However, it soon became clear that the <i>ultra vires</i> rule restricted the flexibility of businesses to expand to meet market opportunities. Void contracts might unexpectedly and arbitrarily hinder business, so companies began to draft ever longer objects clauses, often adding an extra provision stating all objects must be construed as fully separate, or the company's objects include anything directors feel is reasonably incidental to the business.<sup id="cite_ref-34" class="reference"><a href="#cite_note-34"><span class="cite-bracket">[</span>34<span class="cite-bracket">]</span></a></sup> Now the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">2006 Act</a> states that companies are deemed to have unlimited objects, unless they opt for restrictions.<sup id="cite_ref-35" class="reference"><a href="#cite_note-35"><span class="cite-bracket">[</span>35<span class="cite-bracket">]</span></a></sup> The 2006 reforms have also clarified the legal position that if a company does have limited objects, an <i>ultra vires</i> act will cause the directors to have breached a duty to follow the constitution under section 171. Therefore, a shareholder who disagreed with an action outside the company's objects must sue directors for any loss. Contracts remain valid and third parties will be unaffected by this alone.<sup id="cite_ref-36" class="reference"><a href="#cite_note-36"><span class="cite-bracket">[</span>36<span class="cite-bracket">]</span></a></sup> </p><p>Contracts between companies and third parties, however, may turn out to be unenforceable on ordinary principles of <a href="/wiki/Agency_law" class="mw-redirect" title="Agency law">agency law</a> if the director or employee obviously exceeded their authority. As a general rule, third parties need not be concerned with constitutional details conferring power among directors or employees, which may only be found by laboriously searching the register at <a href="/wiki/Companies_House" title="Companies House">Companies House</a>.<sup id="cite_ref-37" class="reference"><a href="#cite_note-37"><span class="cite-bracket">[</span>37<span class="cite-bracket">]</span></a></sup> In general, if a third party acts in <a href="/wiki/Good_faith" title="Good faith">good faith</a>, then any contract, even one going beyond the constitutional authority of the director or employee with whom they strike a deal, is valid. However, if it would appear to a reasonable person that a company employee would not have the authority to enter an agreement, then the contract is voidable at the company's instance so long as there is no equitable <a href="/wiki/Misrepresentation_in_English_law" class="mw-redirect" title="Misrepresentation in English law">bar to rescission</a>. The third party would have a claim against the (probably less solvent) employee instead. First, an agent may have express actual authority, in which case there is no problem. Her actions will be attributed to the company. Second, an agent may have implied actual authority (also sometimes called "usual" authority), which falls within the usual scope of the employee's office.<sup id="cite_ref-38" class="reference"><a href="#cite_note-38"><span class="cite-bracket">[</span>38<span class="cite-bracket">]</span></a></sup> Third, an agent may have "<a href="/wiki/Apparent_authority" title="Apparent authority">apparent authority</a>" (also called "ostensible" authority) as it would appear to a reasonable person, creating an <a href="/wiki/Estoppel" title="Estoppel">estoppel</a>.<sup id="cite_ref-39" class="reference"><a href="#cite_note-39"><span class="cite-bracket">[</span>39<span class="cite-bracket">]</span></a></sup> If the actions of a company employee have authority deriving from a company constitution in none of these ways, a third party will only have recourse for breach of an obligation (a warrant of authority) against the individual agent, and not to the company as the principal. The <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> section 40 makes clear that directors are always deemed to be free of limitations on their authority under the constitution, unless a third party acting in callous bad faith takes advantage of a company whose director acts outside the scope of authority. For employees down the chain of delegation, it becomes less and less likely that a reasonable contracting party would think big transactions will have had authority. For instance, it would be unlikely that a bank cashier would have the authority to sell the bank's <a href="/wiki/Canary_Wharf" title="Canary Wharf">Canary Wharf</a> skyscraper. </p><p>Problems arise where serious torts, and particularly fatal injuries occur as a result of actions by company employees. All torts committed by employees in the course of employment will attribute liability to their company even if acting wholly outside authority, so long as there is some temporal and close connection to work.<sup id="cite_ref-40" class="reference"><a href="#cite_note-40"><span class="cite-bracket">[</span>40<span class="cite-bracket">]</span></a></sup> It is also clear that acts by directors become acts of the company, as they are "the very ego and centre of the personality of the corporation."<sup id="cite_ref-41" class="reference"><a href="#cite_note-41"><span class="cite-bracket">[</span>41<span class="cite-bracket">]</span></a></sup> But despite <a href="/wiki/Strict_liability" title="Strict liability">strict liability</a> in tort, civil remedies are in some instances insufficient to provide a deterrent to a company pursuing business practices that could seriously injure the life, health and environment of other people. Even with additional regulation by government bodies, such as the <a href="/wiki/Health_and_Safety_Executive" title="Health and Safety Executive">Health and Safety Executive</a> or the <a href="/wiki/Environment_Agency" title="Environment Agency">Environment Agency</a>, companies may still have a collective incentive to ignore the rules in the knowledge that the costs and likelihood of enforcement is weaker than potential profits. Criminal sanctions remain problematic, for instance if a company director had no intention to harm anyone, no <i><a href="/wiki/Mens_rea" title="Mens rea">mens rea</a></i>, and managers in the corporate hierarchy had systems to prevent employees committing offences.<sup id="cite_ref-42" class="reference"><a href="#cite_note-42"><span class="cite-bracket">[</span>42<span class="cite-bracket">]</span></a></sup> One step toward reform is found in the <a href="/wiki/Corporate_Manslaughter_and_Corporate_Homicide_Act_2007" title="Corporate Manslaughter and Corporate Homicide Act 2007">Corporate Manslaughter and Corporate Homicide Act 2007</a>. This creates a criminal offence for <a href="/wiki/Manslaughter_in_English_law" title="Manslaughter in English law">manslaughter</a>, meaning a penal fine of up to 10 per cent of turnover against companies whose managers conduct business in a <a href="/wiki/Gross_negligence" title="Gross negligence">grossly negligent</a> fashion, resulting in deaths. Without lifting the veil there remains, however, no personal liability for directors or employees acting in the course of employment, for <a href="/wiki/Corporate_manslaughter_(England_and_Wales)" class="mw-redirect" title="Corporate manslaughter (England and Wales)">corporate manslaughter</a> or otherwise.<sup id="cite_ref-43" class="reference"><a href="#cite_note-43"><span class="cite-bracket">[</span>43<span class="cite-bracket">]</span></a></sup> The quality of a company's accountability to a broader public and the conscientiousness of its behaviour must rely also, in great measure, on its governance. </p> <div class="mw-heading mw-heading3"><h3 id="Piercing_the_veil">Piercing the veil</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=6" title="Edit section: Piercing the veil"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Corporate_veil_in_the_United_Kingdom" title="Corporate veil in the United Kingdom">Corporate veil in the United Kingdom</a>, <a href="/wiki/Piercing_the_corporate_veil" title="Piercing the corporate veil">Piercing the corporate veil</a>, and <a href="/wiki/UK_insolvency_law" class="mw-redirect" title="UK insolvency law">UK insolvency law</a></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Corporate_personality_cases" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_personality" title="Template:Clist personality"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_personality" title="Template talk:Clist personality"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_personality" title="Special:EditPage/Template:Clist personality"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Corporate_personality_cases" style="font-size:114%;margin:0 4em">Corporate personality cases</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Case_of_Sutton%27s_Hospital" title="Case of Sutton's Hospital">Case of Sutton's Hospital</a></i> (1612) 77 ER 960</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Salomon_v_A_Salomon_%26_Co_Ltd" title="Salomon v A Salomon & Co Ltd">Salomon v A Salomon & Co Ltd</a></i> [1896] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKHL/1896/1.html">UKHL 1</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Macaura_v_Northern_Assurance_Co_Ltd" title="Macaura v Northern Assurance Co Ltd">Macaura v Northern Assurance Co Ltd</a></i> [1925] AC 619</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Gilford_Motor_Co_Ltd_v_Horne" title="Gilford Motor Co Ltd v Horne">Gilford Motor Co Ltd v Horne</a></i> [1933] Ch 935</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Lee_v_Lee%27s_Air_Farming_Ltd" title="Lee v Lee's Air Farming Ltd">Lee v Lee's Air Farming Ltd</a></i> [1960] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKPC/1960/1960_33.html">UKPC 33</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Jones_v_Lipman" title="Jones v Lipman">Jones v Lipman</a></i> [1962] 1 WLR 832</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Tunstall_v_Steigmann" title="Tunstall v Steigmann">Tunstall v Steigmann</a></i> [1962] 2 QB 593</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Littlewoods_Mail_Order_Stores_v_IRC" class="mw-redirect" title="Littlewoods Mail Order Stores v IRC">Littlewoods Mail Order Stores v IRC</a></i> [1969] 1 WLR 1214</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Wallersteiner_v_Moir" title="Wallersteiner v Moir">Wallersteiner v Moir</a></i> [1974] 1 WLR 991</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/DHN_Food_Distributors_Ltd_v_Tower_Hamlets_London_Borough_Council" class="mw-redirect" title="DHN Food Distributors Ltd v Tower Hamlets London Borough Council">DHN Ltd v Tower Hamlets LBC</a></i> [1976] 1 WLR 852</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Woolfson_v_Strathclyde_Regional_Council" title="Woolfson v Strathclyde Regional Council">Woolfson v Strathclyde Regional Council</a></i> [1978] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKHL/1978/1978_SC_HL_90.html">UKHL 5</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Ord_v_Belhaven_Pubs_Ltd" title="Ord v Belhaven Pubs Ltd">Ord v Belhaven Pubs Ltd</a></i> [1998] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/1998/243.html">EWCA Civ 243</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Lubbe_v_Cape_Plc" class="mw-redirect" title="Lubbe v Cape Plc">Lubbe v Cape Plc</a></i> [2000] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKHL/2000/41.html">UKHL 41</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Gencor_ACP_Ltd_v_Dalby" title="Gencor ACP Ltd v Dalby">Gencor ACP Ltd v Dalby</a></i> [2000] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWHC/Ch/2000/1560.html">EWHC 1560 (Ch)</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Trustor_AB_v_Smallbone_(No_2)" title="Trustor AB v Smallbone (No 2)">Trustor AB v Smallbone (No 2)</a></i> [2001] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWHC/Ch/2001/703.html">EWHC 703 (Ch)</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Chandler_v_Cape_plc" title="Chandler v Cape plc">Chandler v Cape plc</a></i> [2012] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/2012/525.html">EWCA Civ 525</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Prest_v_Petrodel_Resources_Ltd" title="Prest v Petrodel Resources Ltd">Prest v Petrodel Resources Ltd</a></i> [2013] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKSC/2013/34.html">UKSC 34</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/VTB_Capital_plc_v_Nutritek_International_Corp" title="VTB Capital plc v Nutritek International Corp">VTB Capital plc v Nutritek Int Corp</a></i> [2013] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKSC/2013/5.html">UKSC 5</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Lungowe_v_Vedanta_Resources_plc" title="Lungowe v Vedanta Resources plc">Lungowe v Vedanta Resources plc</a></i> [2019] UKSC 20</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Rome_II_Regulation" title="Rome II Regulation">Rome II Regulation</a> (EC) No <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32007R0864:EN:HTML">864/2007</a> arts 1(2)(d) and 4</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/wiki/UK_company_law" class="mw-redirect" title="UK company law">UK company law</a></div></td></tr></tbody></table></div> <p>If a company goes insolvent, there are certain situations where the courts lift the veil of incorporation on a limited company, and make shareholders or directors contribute to paying off outstanding debts to creditors. However, in UK law the range of circumstances is limited. This is usually said to derive from the "principle" in <i><a href="/wiki/Salomon_v_A_Salomon_%26_Co_Ltd" title="Salomon v A Salomon & Co Ltd">Salomon v A Salomon & Co Ltd</a></i>.<sup id="cite_ref-44" class="reference"><a href="#cite_note-44"><span class="cite-bracket">[</span>44<span class="cite-bracket">]</span></a></sup> In this leading case, a <a href="/wiki/Whitechapel" title="Whitechapel">Whitechapel</a> <a href="/wiki/Shoemaker" class="mw-redirect" title="Shoemaker">cobbler</a> incorporated his business under the <a href="/wiki/Companies_Act_1862" title="Companies Act 1862">Companies Act 1862</a>. At that time, seven people were required to register a company, possibly because the legislature had viewed the appropriate business vehicle for fewer people to be a <a href="/wiki/UK_partnership_law" class="mw-redirect" title="UK partnership law">partnership</a>.<sup id="cite_ref-45" class="reference"><a href="#cite_note-45"><span class="cite-bracket">[</span>45<span class="cite-bracket">]</span></a></sup> Mr Salomon met this requirement by getting six family members to subscribe for one share each. Then, in return for money he lent the company, he made the company issue a <a href="/wiki/Debenture" title="Debenture">debenture</a>, which would secure his debt in priority to other creditors in the event of insolvency. The company did go insolvent, and the company liquidator, acting on behalf of unpaid creditors attempted to sue Mr Salomon personally. Although the Court of Appeal held that Mr Salomon had defeated Parliament's purpose in registering dummy shareholders, and would have made him indemnify the company, the House of Lords held that so long as the simple formal requirements of registration were followed, the shareholders' assets must be treated as separate from the separate legal person that is a company. There could not, in general, be any lifting of the veil.<sup id="cite_ref-46" class="reference"><a href="#cite_note-46"><span class="cite-bracket">[</span>46<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Whitechapel_High_Street_1905.JPG" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/6/66/Whitechapel_High_Street_1905.JPG/220px-Whitechapel_High_Street_1905.JPG" decoding="async" width="220" height="161" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/6/66/Whitechapel_High_Street_1905.JPG/330px-Whitechapel_High_Street_1905.JPG 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/6/66/Whitechapel_High_Street_1905.JPG/440px-Whitechapel_High_Street_1905.JPG 2x" data-file-width="520" data-file-height="381" /></a><figcaption><a href="/wiki/Whitechapel_High_Street" title="Whitechapel High Street">Whitechapel High Street</a>, where <a href="/wiki/Salomon_v_A_Salomon_%26_Co_Ltd" title="Salomon v A Salomon & Co Ltd">Aron Salomon</a>, the most famous litigant in company law, went <a href="/wiki/UK_insolvency_law" class="mw-redirect" title="UK insolvency law">insolvent</a>.</figcaption></figure> <p>This principle is open to a series of qualifications. Most significantly, statute may require directly or indirectly that the company not be treated as a separate entity. Under the <a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a>, section 214 stipulates that company directors<sup id="cite_ref-47" class="reference"><a href="#cite_note-47"><span class="cite-bracket">[</span>47<span class="cite-bracket">]</span></a></sup> must contribute to payment of company debts in winding up if they kept the business running up more debt when they ought to have known there was no reasonable prospect of avoiding insolvency. A number of other cases demonstrate that in construing the meaning of a statute unrelated to company law, the purpose of the legislation should be fulfilled regardless of the existence of a corporate form. For example, in <i><a href="/wiki/Daimler_Co_Ltd_v_Continental_Tyre_and_Rubber_Co_(Great_Britain)_Ltd" class="mw-redirect" title="Daimler Co Ltd v Continental Tyre and Rubber Co (Great Britain) Ltd">Daimler Co Ltd v Continental Tyre and Rubber Co (Great Britain) Ltd</a></i>,<sup id="cite_ref-48" class="reference"><a href="#cite_note-48"><span class="cite-bracket">[</span>48<span class="cite-bracket">]</span></a></sup> the <a href="/wiki/Trading_with_the_Enemy_Act_1914" title="Trading with the Enemy Act 1914">Trading with the Enemy Act 1914</a> said that trading with any person of "enemy character" would be an offence. So even though the Continental Tyre Co Ltd was a "legal person" incorporated in the UK (and therefore British) its directors and shareholders were German (and therefore enemies, while the <a href="/wiki/First_World_War" class="mw-redirect" title="First World War">First World War</a> was being fought). </p><p>There are also case based exceptions to the <i>Salomon</i> principle, though their restrictive scope is not wholly stable. The present rule under English law is that only where a company was set up to commission fraud,<sup id="cite_ref-49" class="reference"><a href="#cite_note-49"><span class="cite-bracket">[</span>49<span class="cite-bracket">]</span></a></sup> or to avoid a pre-existing obligation can its separate identity be ignored. This follows from a Court of Appeal case, <i><a href="/wiki/Adams_v_Cape_Industries_plc" title="Adams v Cape Industries plc">Adams v Cape Industries plc</a></i>.<sup id="cite_ref-50" class="reference"><a href="#cite_note-50"><span class="cite-bracket">[</span>50<span class="cite-bracket">]</span></a></sup> A group of employees suffered <a href="/wiki/Asbestos" title="Asbestos">asbestos</a> diseases after working for the American <a href="/wiki/Wholly_owned_subsidiary" class="mw-redirect" title="Wholly owned subsidiary">wholly owned subsidiary</a> of <a href="/wiki/Cape_plc" title="Cape plc">Cape Industries plc</a>. They were suing in New York to make Cape Industries plc pay for the debts of the subsidiary. Under <a href="/wiki/Conflict_of_laws" title="Conflict of laws">conflict of laws</a> principles, this could only be done if Cape Industries plc was treated as "present" in America through its US subsidiary (i.e. ignoring the separate legal personality of the two companies). Rejecting the claim, and following the reasoning in <i><a href="/wiki/Jones_v_Lipman" title="Jones v Lipman">Jones v Lipman</a></i>,<sup id="cite_ref-51" class="reference"><a href="#cite_note-51"><span class="cite-bracket">[</span>51<span class="cite-bracket">]</span></a></sup> the Court of Appeal emphasised that the US subsidiary had been set up for a lawful purpose of creating a group structure overseas, and had not aimed to circumvent liability in the event of asbestos litigation. The potentially unjust result for <a href="/wiki/Tort" title="Tort">tort</a> victims, who are unable to contract around limited liability and may be left only with a worthless claim against a bankrupt entity, has been changed in <i><a href="/wiki/Chandler_v_Cape_plc" title="Chandler v Cape plc">Chandler v Cape plc</a></i> so that a <a href="/wiki/Duty_of_care" title="Duty of care">duty of care</a> may be owed by a parent to workers of a subsidiary regardless of separated legal personality.<sup id="cite_ref-52" class="reference"><a href="#cite_note-52"><span class="cite-bracket">[</span>52<span class="cite-bracket">]</span></a></sup> However even though tort victims are protected, the restrictive position remains subject to criticism where a <a href="/wiki/Company_group" class="mw-redirect" title="Company group">company group</a> is involved, since it is not clear that companies and actual people ought to get the protection of limited liability in identical ways. An influential decision, although subsequently doubted strongly by the House of Lords,<sup id="cite_ref-53" class="reference"><a href="#cite_note-53"><span class="cite-bracket">[</span>53<span class="cite-bracket">]</span></a></sup> was passed by <a href="/wiki/Lord_Denning_MR" class="mw-redirect" title="Lord Denning MR">Lord Denning MR</a> in <i><a href="/wiki/DHN_Ltd_v_Tower_Hamlets_BC" class="mw-redirect" title="DHN Ltd v Tower Hamlets BC">DHN Ltd v Tower Hamlets BC</a></i>.<sup id="cite_ref-54" class="reference"><a href="#cite_note-54"><span class="cite-bracket">[</span>54<span class="cite-bracket">]</span></a></sup> Here Lord Denning MR held that a group of companies, two subsidiaries wholly owned by a parent, constituted a single <a href="/wiki/Economic" class="mw-redirect" title="Economic">economic</a> unit.<sup id="cite_ref-55" class="reference"><a href="#cite_note-55"><span class="cite-bracket">[</span>55<span class="cite-bracket">]</span></a></sup> Because the companies' shareholders and controlling minds were identical, their rights were to be treated as the same. This allowed the parent company to claim compensation from the council for compulsory purchase of its business, which it could not have done without showing an address on the premises that its subsidiary possessed. Similar approaches to treating corporate "groups" or a "<a href="/wiki/Concern_(business)" title="Concern (business)">concern</a>" as single economic entities exist in many continental European jurisdictions. This is done for tax and accounting purposes in English law, however for general civil liability broadly the rule still followed is that in <i><a href="/wiki/Adams_v_Cape_Industries_plc" title="Adams v Cape Industries plc">Adams v Cape Industries plc</a></i>. In 2013 in <a href="/wiki/Prest_v_Petrodel_Resources_Ltd" title="Prest v Petrodel Resources Ltd">Prest v Petrodel Resources Ltd [2013] UKSC 34</a> the UK Supreme Court returned to the issue of veil lifting/piercing. In an unusual sitting of seven Justices, indicating the importance of the case, they declined to lift the veil in family law preferring instead to utilise trust law. In reaching that decision Lords Sumption and Neuberger set out principles of evasion and concealment to assist in determining when to lift/pierce the corporate veil. The other justices disagreed with this analysis and as <a href="/w/index.php?title=Alan_Dignam&action=edit&redlink=1" class="new" title="Alan Dignam (page does not exist)">Alan Dignam</a> and Peter Oh have argued this has made it extremely difficult for subsequent judges to interpret lifting/piercing precedent.<sup id="cite_ref-56" class="reference"><a href="#cite_note-56"><span class="cite-bracket">[</span>56<span class="cite-bracket">]</span></a></sup> However it is still very rare for English courts to lift the veil.<sup id="cite_ref-57" class="reference"><a href="#cite_note-57"><span class="cite-bracket">[</span>57<span class="cite-bracket">]</span></a></sup> The liability of the company is generally attributed to the company alone. </p> <div class="mw-heading mw-heading3"><h3 id="Capital_regulations">Capital regulations</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=7" title="Edit section: Capital regulations"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Capital_requirement" title="Capital requirement">Capital requirement</a>, <a href="/wiki/Dividends" class="mw-redirect" title="Dividends">Dividends</a>, and <a href="/wiki/Financial_assistance_(share_purchase)" title="Financial assistance (share purchase)">Financial assistance (share purchase)</a></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Capital_regulation_sources" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_capital_regulation" title="Template:Clist capital regulation"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_capital_regulation" title="Template talk:Clist capital regulation"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_capital_regulation" title="Special:EditPage/Template:Clist capital regulation"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Capital_regulation_sources" style="font-size:114%;margin:0 4em">Capital regulation sources</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Second_Company_Law_Directive" title="Second Company Law Directive">Second Company Law Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012L0030:EN:NOT">2012/30/EU</a> arts 6-10, 15</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 761-763</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Centros_Ltd_v_Erhvervs-_og_Selsk." class="mw-redirect" title="Centros Ltd v Erhvervs- og Selsk.">Centros Ltd v Erhvervs- og Selsk.</a></i> (1999) <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:61997J0212:EN:HTML">C-212/97</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 542, 584-597</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/In_re_Wragg_Ltd" class="mw-redirect" title="In re Wragg Ltd">In re Wragg Ltd</a></i> [1897] 1 Ch 796</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Pilmer_v_Duke_Group_Ltd" class="mw-redirect" title="Pilmer v Duke Group Ltd">Pilmer v Duke Group Ltd</a></i> [2001] 2 BCLC 773</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Ooregum_Gold_Mining_Co_of_India_v_Roper" title="Ooregum Gold Mining Co of India v Roper">Ooregum Gold Mining Co of India v Roper</a></i> [1892] AC 125</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Mosely_v_Kofffontein_Mines_Ltd" class="mw-redirect" title="Mosely v Kofffontein Mines Ltd">Mosely v Kofffontein Mines Ltd</a></i> [1904] 2 Ch 108</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/CMAR_2008" class="mw-redirect" title="CMAR 2008">CMAR 2008</a> Sch 3, paras 4 and 70</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 830-831</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Halt_Garage" class="mw-redirect" title="Re Halt Garage">Re Halt Garage</a></i> [1982] 3 All ER 1016</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Aveling_Barford_Ltd_v_Period_Ltd" class="mw-redirect" title="Aveling Barford Ltd v Period Ltd">Aveling Barford Ltd v Period Ltd</a></i> [1989] BCLC 626</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Progress_Ltd_v_Moorgarth_Ltd" class="mw-redirect" title="Progress Ltd v Moorgarth Ltd">Progress Ltd v Moorgarth Ltd</a></i> [2010] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKSC/2010/55.html">UKSC 55</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=It%27s_A_Wrap_(UK)_Ltd_v_Gula&action=edit&redlink=1" class="new" title="It's A Wrap (UK) Ltd v Gula (page does not exist)">It's A Wrap (UK) Ltd v Gula</a></i> [2006] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/2006/544.html">EWCA Civ 544</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Bairstow_v_Queen%27s_Moat_Houses_plc" class="mw-redirect" title="Bairstow v Queen's Moat Houses plc">Bairstow v Queen's Moat Houses plc</a></i> [2001] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/2001/712.html">EWCA Civ 712</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 658, 684-735</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=Re_Chatterly-Whitfield_Collieries_Ltd&action=edit&redlink=1" class="new" title="Re Chatterly-Whitfield Collieries Ltd (page does not exist)">Re Chatterly-Whitfield Collieries Ltd</a></i> [1948] 2 All ER 593</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/wiki/UK_company_law" class="mw-redirect" title="UK company law">UK company law</a></div></td></tr></tbody></table></div> <p>Because limited liability generally prevents shareholders, directors or employees from being sued, the Companies Acts have sought to regulate the company's use of its <a href="/wiki/Capital_(economics)" title="Capital (economics)">capital</a> in at least four ways. "Capital" refers to the <a href="/wiki/Value_(economics)" title="Value (economics)">economic value</a> of a company's assets, such as money, buildings, or equipment. First, and most controversially, the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> section 761, following the EU's <a href="/wiki/Second_Company_Law_Directive" title="Second Company Law Directive">Second Company Law Directive</a>,<sup id="cite_ref-58" class="reference"><a href="#cite_note-58"><span class="cite-bracket">[</span>58<span class="cite-bracket">]</span></a></sup> requires that when a <a href="/wiki/Public_company" title="Public company">public company</a> begins to trade, it has a minimum of £50,000 promised to be paid up by the shareholders. After that, the capital can be spent. This is a largely irrelevant sum for almost any public company, and although the first Companies Acts required it, since 1862 there has been no similar provision for a private company. Nevertheless, a number of EU member states kept minimum capital rules for their private companies, until recently. In 1999, in <i><a href="/wiki/Centros_Ltd_v_Erhvervs-_og_Selskabsstyrelsen" title="Centros Ltd v Erhvervs- og Selskabsstyrelsen">Centros Ltd v Erhvervs- og Selskabsstyrelsen</a></i><sup id="cite_ref-59" class="reference"><a href="#cite_note-59"><span class="cite-bracket">[</span>59<span class="cite-bracket">]</span></a></sup> the <a href="/wiki/European_Court_of_Justice" title="European Court of Justice">European Court of Justice</a> held that a Danish minimum capital rule for private companies was a disproportionate infringement of the right of establishment for businesses in the EU. A UK private limited company was refused registration by the Danish authorities, but it was held that the refusal was unlawful because the minimum capital rules did not proportionately achieve the aim of protecting creditors. Less restrictive means could achieve the same goal, such as allowing creditors to contract for guarantees. This led a large number of businesses in countries with minimum capital rules, like France and Germany, to begin incorporating as a UK "<a href="/wiki/Limited_company" title="Limited company">Ltd</a>". France abolished its minimum capital requirement for the <a href="/wiki/Soci%C3%A9t%C3%A9_%C3%A0_responsabilit%C3%A9_limit%C3%A9e" title="Société à responsabilité limitée">SARL</a> in 2003, and Germany created a form of <a href="/wiki/GmbH" title="GmbH">GmbH</a> without minimum capital in 2008.<sup id="cite_ref-60" class="reference"><a href="#cite_note-60"><span class="cite-bracket">[</span>60<span class="cite-bracket">]</span></a></sup> However, while the Second Company Law Directive is not amended, the rules remain in place for public companies.<sup id="cite_ref-61" class="reference"><a href="#cite_note-61"><span class="cite-bracket">[</span>61<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Barnum.aktie.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/5/54/Barnum.aktie.jpg/220px-Barnum.aktie.jpg" decoding="async" width="220" height="167" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/5/54/Barnum.aktie.jpg/330px-Barnum.aktie.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/5/54/Barnum.aktie.jpg/440px-Barnum.aktie.jpg 2x" data-file-width="603" data-file-height="457" /></a><figcaption>A 1903 stock certificate of a <a href="/wiki/Circus" title="Circus">circus</a> business, <a href="/wiki/Barnum_%26_Bailey" class="mw-redirect" title="Barnum & Bailey">Barnum & Bailey</a>, showing an issue price of £1 a share. The American business's founder <a href="/wiki/P._T._Barnum" title="P. T. Barnum">P. T. Barnum</a> was known for his phrase "<a href="/wiki/There%27s_a_sucker_born_every_minute" title="There's a sucker born every minute">There's a sucker born every minute</a>."</figcaption></figure> <p>The second measures, which originally came from the common law but also went into the <a href="/wiki/Second_Company_Law_Directive" title="Second Company Law Directive">Second Company Law Directive</a>, were to regulate what was paid for shares. Initial subscribers to a memorandum for public companies must buy their shares with cash,<sup id="cite_ref-62" class="reference"><a href="#cite_note-62"><span class="cite-bracket">[</span>62<span class="cite-bracket">]</span></a></sup> though afterwards it is possible to give a company services or assets in return for shares. The problem was whether the services or assets accepted were in fact as valuable to the company as the cash share price otherwise would be. At common law, <i><a href="/wiki/In_re_Wragg_Ltd" class="mw-redirect" title="In re Wragg Ltd">In re Wragg Ltd</a></i> said that any exchange that was "honestly and not colourably" agreed to, between the company and the purchaser of shares, would be presumed legitimate.<sup id="cite_ref-63" class="reference"><a href="#cite_note-63"><span class="cite-bracket">[</span>63<span class="cite-bracket">]</span></a></sup> Later on it was also held that if the assets given were probably understood by both parties to have been insufficient, then this would count as a "colourable" taint, and the shares could be treated as being not properly paid for.<sup id="cite_ref-64" class="reference"><a href="#cite_note-64"><span class="cite-bracket">[</span>64<span class="cite-bracket">]</span></a></sup> The shareholder would have to pay again. This <i>laissez faire</i> approach was changed for public companies. Shares cannot be issued in return for services that will only be provided at a later date.<sup id="cite_ref-65" class="reference"><a href="#cite_note-65"><span class="cite-bracket">[</span>65<span class="cite-bracket">]</span></a></sup> Shares can be issued in return for assets, but a public company must pay for an independent valuation.<sup id="cite_ref-66" class="reference"><a href="#cite_note-66"><span class="cite-bracket">[</span>66<span class="cite-bracket">]</span></a></sup> There are also absolute limits to what a share can be bought for in cash, based on a share's "nominal value" or "par value". This refers to a figure chosen by a company when it begins to sell shares, and it can be anything from 1 penny up to the market price. UK law always required that some nominal value be set, because it was thought that a lower limit of some kind should be in place for how much shares could be sold, even though this very figure was chosen by the company itself.<sup id="cite_ref-67" class="reference"><a href="#cite_note-67"><span class="cite-bracket">[</span>67<span class="cite-bracket">]</span></a></sup> Every share, therefore, is still required to have a nominal value and shares cannot be sold at a price lower.<sup id="cite_ref-68" class="reference"><a href="#cite_note-68"><span class="cite-bracket">[</span>68<span class="cite-bracket">]</span></a></sup> In practice this has meant companies always set nominal values so low below the issue price, that the actual market price at which a share ends up being traded is very unlikely to plummet so far. This has led to the criticism for at least 60 years that the rule is useless and best abolished.<sup id="cite_ref-69" class="reference"><a href="#cite_note-69"><span class="cite-bracket">[</span>69<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:FTSE_100_index_chart_since_1984.png" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/6/6d/FTSE_100_index_chart_since_1984.png/220px-FTSE_100_index_chart_since_1984.png" decoding="async" width="220" height="128" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/6/6d/FTSE_100_index_chart_since_1984.png/330px-FTSE_100_index_chart_since_1984.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/6/6d/FTSE_100_index_chart_since_1984.png/440px-FTSE_100_index_chart_since_1984.png 2x" data-file-width="992" data-file-height="578" /></a><figcaption>The <a href="/wiki/FTSE_100_Index" title="FTSE 100 Index">FTSE 100 Index</a>, here between 1984 and 2013, indicates value that traders in the <a href="/wiki/Stock_market" title="Stock market">stock market</a> perceive the UK's top 100 companies to have, given the dividends they will pay out. Dividends can only be paid on profits above a company's "<a href="/wiki/Legal_capital" class="mw-redirect" title="Legal capital">legal capital</a>": the initial total shareholders contributed when they bought their shares.</figcaption></figure> <p>The third, and practically most important strategy for creditor protection, was to require that dividends and other returns to shareholders could only be made, generally speaking, if a company had profits. The concept of "<a href="/wiki/Profit_(accounting)" title="Profit (accounting)">profit</a>" is defined by law as having assets above the amount that shareholders, who initially bought shares from the company, contributed in return for their shares. For example, a company could launch its business with 1000 shares (for public companies, called an "IPO" or <a href="/wiki/Initial_public_offering" title="Initial public offering">initial public offering</a>) each with a nominal value of 1 penny, and an issue price of £1. Shareholders would buy the £1 shares, and if all are sold, £1000 would become the company's "<a href="/wiki/Legal_capital" class="mw-redirect" title="Legal capital">legal capital</a>". Profits are whatever the company makes on top of that £1000, though as a company continues to trade, the market price of shares could well be going up to £2 or £10, or indeed fall to 50 pence or some other number. The <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> states in section 830 that <a href="/wiki/Dividends" class="mw-redirect" title="Dividends">dividends</a>, or any other kind of distribution, can only be given out from surplus profits beyond the legal capital.<sup id="cite_ref-70" class="reference"><a href="#cite_note-70"><span class="cite-bracket">[</span>70<span class="cite-bracket">]</span></a></sup> It is generally the decision of the board of directors, affirmed by a shareholder resolution, whether to declare a dividend or perhaps simply retain the earnings and invest them back into the business to grow and expand.<sup id="cite_ref-71" class="reference"><a href="#cite_note-71"><span class="cite-bracket">[</span>71<span class="cite-bracket">]</span></a></sup> The calculation of companies' assets and liabilities, losses and profits, will follow the <a href="/wiki/Generally_Accepted_Accounting_Practice_(UK)" title="Generally Accepted Accounting Practice (UK)">Generally Accepted Accounting Principles</a> in the UK, but this is not an objective, scientific process: a variety of different accounting methods can be used which can lead to different assessments of when a profit exists. The prohibition on falling below the legal capital applies to "distributions" in any form, and so "disguised" distributions are also caught. This has been held to include, for example, an unwarranted salary payment to a director's wife when she had not worked,<sup id="cite_ref-72" class="reference"><a href="#cite_note-72"><span class="cite-bracket">[</span>72<span class="cite-bracket">]</span></a></sup> and a transfer of a property within a company group at half its market value.<sup id="cite_ref-73" class="reference"><a href="#cite_note-73"><span class="cite-bracket">[</span>73<span class="cite-bracket">]</span></a></sup> A general principle, however, recently expounded in <i><a href="/wiki/Progress_Property_Co_Ltd_v_Moorgarth_Group_Ltd" title="Progress Property Co Ltd v Moorgarth Group Ltd">Progress Property Co Ltd v Moorgarth Group Ltd</a></i> is that if a transaction is negotiated in good faith and at arm's length, then it may not be unwound,<sup id="cite_ref-74" class="reference"><a href="#cite_note-74"><span class="cite-bracket">[</span>74<span class="cite-bracket">]</span></a></sup> and this is apparently so even if it means that creditors have been "ripped off". If distributions are made without meeting the law's criteria, then a company has a claim to recover the money from any recipients. They are liable as <a href="/wiki/English_trusts_law" class="mw-redirect" title="English trusts law">constructive trustees</a>,<sup id="cite_ref-75" class="reference"><a href="#cite_note-75"><span class="cite-bracket">[</span>75<span class="cite-bracket">]</span></a></sup> which probably mirrors the general principles of any action in <a href="/wiki/Unjust_enrichment" class="mw-redirect" title="Unjust enrichment">unjust enrichment</a>.<sup id="cite_ref-76" class="reference"><a href="#cite_note-76"><span class="cite-bracket">[</span>76<span class="cite-bracket">]</span></a></sup> This means that liability is probably strict, subject to a change of position defence, and the rules of tracing will apply if assets wrongfully paid out of the company have been passed on. For example, in <i><a href="/w/index.php?title=It%27s_A_Wrap_(UK)_Ltd_v_Gula&action=edit&redlink=1" class="new" title="It's A Wrap (UK) Ltd v Gula (page does not exist)">It's A Wrap (UK) Ltd v Gula</a></i><sup id="cite_ref-77" class="reference"><a href="#cite_note-77"><span class="cite-bracket">[</span>77<span class="cite-bracket">]</span></a></sup> the directors of a bankrupt company argued that they had been unaware that dividend payments they paid themselves were unlawful (as there had not in fact been profits) because their tax advisers had said it was okay. The Court of Appeal held that ignorance of the law was not a defence. A contravention existed so long as one ought to have known of the facts that show a dividend would contravene the law. Directors can similarly be liable for breach of duty, and so to restore the money wrongfully paid away, if they failed to take reasonable care.<sup id="cite_ref-78" class="reference"><a href="#cite_note-78"><span class="cite-bracket">[</span>78<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Old_Trafford_inside_20060726_1.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/4/43/Old_Trafford_inside_20060726_1.jpg/220px-Old_Trafford_inside_20060726_1.jpg" decoding="async" width="220" height="147" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/4/43/Old_Trafford_inside_20060726_1.jpg/330px-Old_Trafford_inside_20060726_1.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/4/43/Old_Trafford_inside_20060726_1.jpg/440px-Old_Trafford_inside_20060726_1.jpg 2x" data-file-width="1024" data-file-height="683" /></a><figcaption>After a <a href="/wiki/Leveraged_buyout" title="Leveraged buyout">leveraged buyout</a> of the leading UK football team, the <a href="/wiki/Glazer_ownership_of_Manchester_United" title="Glazer ownership of Manchester United">Glazer ownership of Manchester United</a> plunged the club into debt,<sup id="cite_ref-79" class="reference"><a href="#cite_note-79"><span class="cite-bracket">[</span>79<span class="cite-bracket">]</span></a></sup> a thing that would have been more difficult before prohibitions on <a href="/wiki/Financial_assistance_for_share_purchase" class="mw-redirect" title="Financial assistance for share purchase">financial assistance for share purchase</a> were relaxed in 1981.</figcaption></figure> <p>Legal capital must be maintained (not distributed to shareholders, or distributed "in disguise") unless a company formally reduces its legal capital. Then it can make distributions, which might be desirable if a company wishes to shrink. A private company must have a 75 per cent vote of the shareholders, and the directors must then warrant that the company will remain solvent and will be able to pay its debts.<sup id="cite_ref-80" class="reference"><a href="#cite_note-80"><span class="cite-bracket">[</span>80<span class="cite-bracket">]</span></a></sup> If this turns out to be a negligent statement, the director can be sued. But this means it is hard to <a href="/wiki/Claw_back" class="mw-redirect" title="Claw back">claw back</a> any profits from shareholders if a company does indeed go insolvent, if the director's statement appeared good at the time. If not all the directors are prepared to make a solvency statement, the company may apply to court for a decision. In public companies, a special resolution must also be passed, and a court order is necessary.<sup id="cite_ref-81" class="reference"><a href="#cite_note-81"><span class="cite-bracket">[</span>81<span class="cite-bracket">]</span></a></sup> The court can make a number of orders, for example that creditors should be protected with <a href="/wiki/Security_interest" title="Security interest">security interest</a>.<sup id="cite_ref-82" class="reference"><a href="#cite_note-82"><span class="cite-bracket">[</span>82<span class="cite-bracket">]</span></a></sup> There is a general principle that shareholders must be treated equally in making capital reductions,<sup id="cite_ref-83" class="reference"><a href="#cite_note-83"><span class="cite-bracket">[</span>83<span class="cite-bracket">]</span></a></sup> however this does not mean that unequally situated shareholders must be treated the same. In particular, while no ordinary shareholder should lose shares disproportionately, it has been held legitimate to cancel preferential shares before others, particularly if those shares are entitled to preferential payment as a way of considering "the position of the company itself as an economic entity".<sup id="cite_ref-84" class="reference"><a href="#cite_note-84"><span class="cite-bracket">[</span>84<span class="cite-bracket">]</span></a></sup> Economically, companies buying their own shares back from shareholders would achieve the same effect as a reduction of capital. Originally it was prohibited by the common law,<sup id="cite_ref-85" class="reference"><a href="#cite_note-85"><span class="cite-bracket">[</span>85<span class="cite-bracket">]</span></a></sup> but now although the general rule remains in section 658 there are two exceptions. First, a company may issue shares on terms that they may be redeemed, though only if there is express authority in the constitution of a public company, and the re-purchase can only be made from distributable profits.<sup id="cite_ref-86" class="reference"><a href="#cite_note-86"><span class="cite-bracket">[</span>86<span class="cite-bracket">]</span></a></sup> Second, since 1980 shares can simply be bought back from shareholders if, again this is done out of distributable profits. Crucially, the directors must also state that the company will be able to pay all its debts and continue for the next year, and shareholders must approve this by special resolution.<sup id="cite_ref-87" class="reference"><a href="#cite_note-87"><span class="cite-bracket">[</span>87<span class="cite-bracket">]</span></a></sup> Under the <a href="/wiki/Listing_Rules" title="Listing Rules">Listing Rules</a> for public companies, shareholders must generally be given the same buy back offer, and get shares bought back pro rata.<sup id="cite_ref-88" class="reference"><a href="#cite_note-88"><span class="cite-bracket">[</span>88<span class="cite-bracket">]</span></a></sup> How many shares are retained by the company as <a href="/wiki/Treasury_shares" class="mw-redirect" title="Treasury shares">treasury shares</a> or cancelled must be reported to Companies House.<sup id="cite_ref-89" class="reference"><a href="#cite_note-89"><span class="cite-bracket">[</span>89<span class="cite-bracket">]</span></a></sup> From the company's perspective the legal capital is being reduced, hence the same regulation applies. From the shareholder's perspective, the company buying back some of its shares is much the same as simply paying a dividend, except for one main difference. Taxation of dividends and share buy backs tends to be different, meaning that often buy backs are popular just because they "<a href="/wiki/Tax_avoidance" title="Tax avoidance">dodge</a>" the Exchequer.<sup id="cite_ref-90" class="reference"><a href="#cite_note-90"><span class="cite-bracket">[</span>90<span class="cite-bracket">]</span></a></sup> </p> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Financial_assistance_cases" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_financial_assistance" title="Template:Clist financial assistance"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_financial_assistance" title="Template talk:Clist financial assistance"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_financial_assistance" title="Special:EditPage/Template:Clist financial assistance"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Financial_assistance_cases" style="font-size:114%;margin:0 4em">Financial assistance cases</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=Barclays_Bank_Ltd_v_British_%26_Commonwealth_Holdings_plc&action=edit&redlink=1" class="new" title="Barclays Bank Ltd v British & Commonwealth Holdings plc (page does not exist)"><span class="wrap">Barclays Bank Ltd v British & Commonwealth Holdings plc</span></a></i> [1996] 1 All ER 381</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=Chaston_v_SWP_Group_plc&action=edit&redlink=1" class="new" title="Chaston v SWP Group plc (page does not exist)">Chaston v SWP Group plc</a></i> [2003] 1 BCLC 675</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Anglo_Petroleum_Ltd_v_TFB_(Mortgages)_Ltd" title="Anglo Petroleum Ltd v TFB (Mortgages) Ltd"><span class="wrap">Anglo Petroleum Ltd v TFB (Mortgages) Ltd</span></a></i> [2007] BCC 407</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Brady_v_Brady" title="Brady v Brady">Brady v Brady</a></i> [1988] 2 All ER 617</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/wiki/UK_company_law" class="mw-redirect" title="UK company law">UK company law</a></div></td></tr></tbody></table></div> <p>The fourth main area of regulation, which is usually thought of as preserving a company's capital, is prohibition of companies providing other people with <a href="/wiki/Financial_assistance_(share_purchase)" title="Financial assistance (share purchase)">financial assistance</a> for purchasing the company's own shares. The main problem which the regulation was intended to prevent was <a href="/wiki/Leveraged_buyouts" class="mw-redirect" title="Leveraged buyouts">leveraged buyouts</a> where, for example, an investor gets a loan from a bank, secures the loan on the company it is about to buy, and uses the money to buy the shares.<sup id="cite_ref-91" class="reference"><a href="#cite_note-91"><span class="cite-bracket">[</span>91<span class="cite-bracket">]</span></a></sup> It was seen as a capital problem in the sense that if the venture proved unsustainable, all the company's assets would be seized under the mortgage terms, even though technically it did not reduce a company's capital.<sup id="cite_ref-92" class="reference"><a href="#cite_note-92"><span class="cite-bracket">[</span>92<span class="cite-bracket">]</span></a></sup> A leveraged buy out, in effect, is the same as a bank giving someone a loan to buy a house with a <a href="/wiki/Mortgage_industry_of_the_United_Kingdom" title="Mortgage industry of the United Kingdom">100 per cent mortgage</a> on that house. However, in a company's case, the bank is likely to be only one among a large number of creditors, such as <a href="/wiki/Employee" class="mw-redirect" title="Employee">employees</a>, <a href="/wiki/Consumer" title="Consumer">consumers</a>, <a href="/wiki/Taxpayer" title="Taxpayer">taxpayers</a>, or small businesses who rely on the company's trade. Only the bank will have priority for its loan, and so the risk falls wholly on other stakeholders. Financial assistance for share purchase, especially indemnifying a takeover bidder's loan, was therefore seen as encouraging risky ventures that were prone to failure, to the detriment of creditors other than the bank. It was prohibited from 1929.<sup id="cite_ref-93" class="reference"><a href="#cite_note-93"><span class="cite-bracket">[</span>93<span class="cite-bracket">]</span></a></sup> The prohibition remains in regard to public companies,<sup id="cite_ref-94" class="reference"><a href="#cite_note-94"><span class="cite-bracket">[</span>94<span class="cite-bracket">]</span></a></sup> however the <a href="/w/index.php?title=Companies_Act_1981&action=edit&redlink=1" class="new" title="Companies Act 1981 (page does not exist)">Companies Act 1981</a> relaxed the restrictions and the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> section 678, following various sources of academic criticism, repealed the prohibition for private companies altogether. It became possible to "<a href="/wiki/Take_private" class="mw-redirect" title="Take private">take private</a>" a public company (on its purchase, change the company from a plc to an Ltd). The result has been a growing number of <a href="/wiki/Leveraged_buyout" title="Leveraged buyout">leveraged buyouts</a>, and an increase in the <a href="/wiki/Private_equity" title="Private equity">private equity</a> industry of the UK.<sup id="cite_ref-95" class="reference"><a href="#cite_note-95"><span class="cite-bracket">[</span>95<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Corporate_governance">Corporate governance</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=8" title="Edit section: Corporate governance"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Corporate_governance" title="Corporate governance">Corporate governance</a></div> <figure class="mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Singapore_Skyline_Panorama.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/3/37/Singapore_Skyline_Panorama.jpg/300px-Singapore_Skyline_Panorama.jpg" decoding="async" width="300" height="121" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/3/37/Singapore_Skyline_Panorama.jpg/450px-Singapore_Skyline_Panorama.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/3/37/Singapore_Skyline_Panorama.jpg/600px-Singapore_Skyline_Panorama.jpg 2x" data-file-width="2500" data-file-height="1010" /></a><figcaption>Tough corporate governance reform, the <a href="/wiki/CDDA_1986" class="mw-redirect" title="CDDA 1986">CDDA 1986</a>, disqualified the directors in <i><a href="/wiki/Re_Barings_plc_(No_5)" title="Re Barings plc (No 5)">Re Barings plc (No 5)</a></i>,<sup id="cite_ref-auto_96-0" class="reference"><a href="#cite_note-auto-96"><span class="cite-bracket">[</span>96<span class="cite-bracket">]</span></a></sup> after a rogue trader brought down Barings Bank, unsupervised, from the <a href="/wiki/Singapore" title="Singapore">Singapore</a> office.</figcaption></figure> <p>Corporate governance is concerned primarily with the balance of power between the two basic organs of a UK company: the <a href="/wiki/Board_of_directors" title="Board of directors">board of directors</a> and the <a href="/wiki/General_meeting" class="mw-redirect" title="General meeting">general meeting</a>. The term "governance" is often used in the more narrow sense of referring to principles in the <a href="/wiki/UK_Corporate_Governance_Code" title="UK Corporate Governance Code">UK Corporate Governance Code</a>. This makes recommendations about the structure, accountability and remuneration of the board of directors in listed companies, and was developed after the <a href="/wiki/Polly_Peck" title="Polly Peck">Polly Peck</a>, <a href="/wiki/Bank_of_Credit_and_Commerce_International" title="Bank of Credit and Commerce International">BCCI</a> and <a href="/wiki/Robert_Maxwell" title="Robert Maxwell">Robert Maxwell</a> scandals led to the <a href="/wiki/Cadbury_Report" title="Cadbury Report">Cadbury Report</a> of 1992. However, put broadly corporate governance in UK law focuses on the relative rights and duties of directors, <a href="/wiki/Shareholders" class="mw-redirect" title="Shareholders">shareholders</a>, <a href="/wiki/Employees" class="mw-redirect" title="Employees">employees</a>, <a href="/wiki/Creditors" class="mw-redirect" title="Creditors">creditors</a> and others who are seen as having a "<a href="/wiki/Stakeholder_(corporate)" title="Stakeholder (corporate)">stake</a>" in the company's success. The <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a>, in conjunction with other statutes and case law, lays down an irreducible minimum core of mandatory rights for shareholders, employees, creditors and others by which all companies must abide. UK rules usually focus on protecting shareholders or the investing public, but above the minimum, company constitutions are essentially free to allocate rights and duties to different groups in any form desired. </p> <div class="mw-heading mw-heading3"><h3 id="Constitutional_separation_of_powers">Constitutional separation of powers</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=9" title="Edit section: Constitutional separation of powers"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Articles_of_association" title="Articles of association">Articles of association</a></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Company_constitution_cases" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_co_constitution" title="Template:Clist co constitution"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_co_constitution" title="Template talk:Clist co constitution"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_co_constitution" title="Special:EditPage/Template:Clist co constitution"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Company_constitution_cases" style="font-size:114%;margin:0 4em">Company constitution cases</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Attorney_General_v_Davy" title="Attorney General v Davy">Attorney General v Davy</a></i> (1741) 2 Atk 212</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/R_v_Richardson" title="R v Richardson">R v Richardson</a></i> (1758) 97 ER 426</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Pender_v_Lushington" title="Pender v Lushington">Pender v Lushington</a></i> (1877) 6 Ch D 70</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Automatic_Self-Clean._Filter_Ltd_v_Cuninghame" class="mw-redirect" title="Automatic Self-Clean. Filter Ltd v Cuninghame"><span class="wrap">Automatic Self-Clean. Filter Ltd v Cuninghame</span></a></i> [1906] 2 Ch 34</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Quin_%26_Axtens_Ltd_v_Salmon" title="Quin & Axtens Ltd v Salmon">Quin & Axtens Ltd v Salmon</a></i> [1909] AC 442</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Barron_v_Potter" title="Barron v Potter">Barron v Potter</a></i> [1914] 1 Ch 895</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Hickman_v_Kent_Sheep-Breeders%E2%80%99_Association" class="mw-redirect" title="Hickman v Kent Sheep-Breeders’ Association"><span class="wrap">Hickman v Kent Sheep-Breeders’ Association</span></a></i> [1915] 1 Ch 881</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Southern_Foundries_(1926)_Ltd_v_Shirlaw" title="Southern Foundries (1926) Ltd v Shirlaw">Southern Foundries (1926) Ltd v Shirlaw</a></i> [1940] AC 701</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Harold_Holdsworth_Ltd_v_Caddies" class="mw-redirect" title="Harold Holdsworth Ltd v Caddies">Harold Holdsworth Ltd v Caddies</a></i> [1955] 1 WLR 352</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Bushell_v_Faith" title="Bushell v Faith">Bushell v Faith</a></i> [1970] AC 1099</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Attorney_General_of_Belize_v_Belize_Telecom_Ltd" title="Attorney General of Belize v Belize Telecom Ltd"><span class="wrap">Attorney General of Belize v Belize Telecom Ltd</span></a></i> [2009]</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> s 33</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a class="mw-selflink selflink">UK company law</a></div></td></tr></tbody></table></div> <p>The constitution of a company is usually referred to as the "<a href="/wiki/Articles_of_association" title="Articles of association">articles of association</a>".<sup id="cite_ref-97" class="reference"><a href="#cite_note-97"><span class="cite-bracket">[</span>97<span class="cite-bracket">]</span></a></sup> Companies are presumed to adopt a set of "<a href="/wiki/Model_Articles" class="mw-redirect" title="Model Articles">Model Articles</a>",<sup id="cite_ref-98" class="reference"><a href="#cite_note-98"><span class="cite-bracket">[</span>98<span class="cite-bracket">]</span></a></sup> unless the incorporators choose different rules.<sup id="cite_ref-99" class="reference"><a href="#cite_note-99"><span class="cite-bracket">[</span>99<span class="cite-bracket">]</span></a></sup> The Model Articles set out essential procedures for conducting a company's business, such as when to hold meetings, appointment of directors, or preparing accounts. These rules may always be changed, except where a provision is a compulsory term deriving from the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a>, or similar mandatory <a href="/wiki/Law" title="Law">law</a>. In this sense a company constitution is functionally similar to any business contract, albeit one that is usually variable among the contracting parties with less than consensus. In <i><a href="/wiki/Attorney_General_of_Belize_v_Belize_Telecom_Ltd" title="Attorney General of Belize v Belize Telecom Ltd">Attorney General of Belize v Belize Telecom Ltd</a></i>,<sup id="cite_ref-100" class="reference"><a href="#cite_note-100"><span class="cite-bracket">[</span>100<span class="cite-bracket">]</span></a></sup> <a href="/wiki/Lord_Hoffmann" class="mw-redirect" title="Lord Hoffmann">Lord Hoffmann</a> held that courts construe the meaning of a company's articles in the same way as any other contract, or a piece of legislation, mindful of the context in which it was formulated.<sup id="cite_ref-101" class="reference"><a href="#cite_note-101"><span class="cite-bracket">[</span>101<span class="cite-bracket">]</span></a></sup> So in this case, the appropriate construction of a company's articles led to the implication that a director could be removed from office by shareholders (and did not have a job for life), even though a literal construction would have meant no person possessed the two classes of shares required to remove that director under the articles. Even if companies' articles are silent on an issue, the courts will construe the gaps to be filled with provisions consistent with the rest of the instrument in its context, as in the old case of <i><a href="/wiki/Attorney_General_v_Davy" title="Attorney General v Davy">Attorney General v Davy</a></i> where <a href="/wiki/Lord_Hardwicke_LC" class="mw-redirect" title="Lord Hardwicke LC">Lord Hardwicke LC</a> held that a simple majority was enough for the election of a chaplain.<sup id="cite_ref-102" class="reference"><a href="#cite_note-102"><span class="cite-bracket">[</span>102<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Direktorium_LDE.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/a/ac/Direktorium_LDE.jpg/220px-Direktorium_LDE.jpg" decoding="async" width="220" height="148" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/a/ac/Direktorium_LDE.jpg/330px-Direktorium_LDE.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/a/ac/Direktorium_LDE.jpg/440px-Direktorium_LDE.jpg 2x" data-file-width="843" data-file-height="567" /></a><figcaption>A <a href="/wiki/Board_of_directors" title="Board of directors">board of directors</a> is accountable to the <a href="/wiki/General_meeting" class="mw-redirect" title="General meeting">general meeting</a>. These are the two essential organs of all UK companies.</figcaption></figure> <p>Typically, a company's articles will vest a general power of management in the board of directors, with full power of directors to delegate tasks to other employees, subject to an instruction right reserved for the general meeting acting with a three quarter majority. This basic pattern can theoretically be varied in any number of ways, and so long as it does not contravene the Act, courts will enforce that balance of power. In <i><a href="/wiki/Automatic_Self-Cleansing_Filter_Syndicate_Co_Ltd_v_Cuninghame" title="Automatic Self-Cleansing Filter Syndicate Co Ltd v Cuninghame">Automatic Self-Cleansing Filter Syndicate Co Ltd v Cuninghame</a></i>,<sup id="cite_ref-103" class="reference"><a href="#cite_note-103"><span class="cite-bracket">[</span>103<span class="cite-bracket">]</span></a></sup> a shareholder sued the board for not following a resolution, carried with an ordinary majority of votes, to sell off the company's assets. The Court of Appeal refused the claim,<sup id="cite_ref-104" class="reference"><a href="#cite_note-104"><span class="cite-bracket">[</span>104<span class="cite-bracket">]</span></a></sup> since the articles stipulated that a three quarter majority was needed to issue specific instructions to the board. Shareholders always have the option of gaining the votes to change the constitution or threaten directors with removal, but they may not sidestep the separation of powers found in the company constitution.<sup id="cite_ref-105" class="reference"><a href="#cite_note-105"><span class="cite-bracket">[</span>105<span class="cite-bracket">]</span></a></sup> Though older cases raise an element of uncertainty,<sup id="cite_ref-106" class="reference"><a href="#cite_note-106"><span class="cite-bracket">[</span>106<span class="cite-bracket">]</span></a></sup> the majority opinion is that other provisions of a company's constitution generate personal rights that may be enforced by company members individually. Of the most important is a member's right to vote at meetings. Votes need not necessarily attach to shares, as preferential shares (e.g., those with extra <a href="/wiki/Dividend" title="Dividend">dividend</a> rights) are frequently non-voting. However, ordinary shares invariably do have votes and in <i><a href="/wiki/Pender_v_Lushington" title="Pender v Lushington">Pender v Lushington</a></i> <a href="/wiki/George_Jessel_(jurist)" title="George Jessel (jurist)">Lord Jessel MR</a> stated votes were so sacrosanct as to be enforceable like a "right of property".<sup id="cite_ref-107" class="reference"><a href="#cite_note-107"><span class="cite-bracket">[</span>107<span class="cite-bracket">]</span></a></sup> Otherwise, the articles may be enforced by any member privy to the contract.<sup id="cite_ref-108" class="reference"><a href="#cite_note-108"><span class="cite-bracket">[</span>108<span class="cite-bracket">]</span></a></sup> Companies are excluded from the <a href="/wiki/Contracts_(Rights_of_Third_Parties)_Act_1999" title="Contracts (Rights of Third Parties) Act 1999">Contracts (Rights of Third Parties) Act 1999</a>, so people who are conferred benefits under a constitution, but are not themselves members, are not necessarily able to sue for compliance.<sup id="cite_ref-109" class="reference"><a href="#cite_note-109"><span class="cite-bracket">[</span>109<span class="cite-bracket">]</span></a></sup> Partly for certainty and to achieve objectives the Act would prohibit, shareholders in small closely held companies frequently supplement the constitution by entering a <a href="/wiki/Shareholders%27_agreement" title="Shareholders' agreement">shareholders' agreement</a>.<sup id="cite_ref-110" class="reference"><a href="#cite_note-110"><span class="cite-bracket">[</span>110<span class="cite-bracket">]</span></a></sup> By contract shareholders can regulate any of their rights outside the company, yet their rights within the company remain a separate matter. </p> <div class="mw-heading mw-heading3"><h3 id="Shareholder_rights">Shareholder rights</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=10" title="Edit section: Shareholder rights"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Shareholder_rights_in_the_United_Kingdom" class="mw-redirect" title="Shareholder rights in the United Kingdom">Shareholder rights in the United Kingdom</a>, <a href="/wiki/Institutional_investor" title="Institutional investor">Institutional investor</a>, and <a href="/wiki/Shareholder" title="Shareholder">Shareholder</a></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1224211176"><div class="quotebox pullquote floatleft" style="width:24em; ; color: #202122;background-color: #c6dbf7;"> <blockquote class="quotebox-quote left-aligned" style=""> <p>"...the relationship between management and ownership in limited liability companies has tended progressively to be more and more shadowy. Even before the war, apprehension was expressed on this point, and remedies were then suggested, and, with the great growth in the size of companies, the old relationship, which really grew out of the idea of partnership, where individual owners were closely concerned themselves with the management, has largely disappeared in modern company structure. The growth of groups or chains of companies, which make the true economic entity rather than the company itself, where we get a whole complex of companies operating together—that factor has still further divorced management from ownership. This now well-developed tendency is, in fact, practically ignored by the company law as it exists today, and that is another reason why amendment is required…" </p> </blockquote> <div style="padding-bottom: 0; padding-top: 0.5em"><cite class="right-aligned" style=""><a href="/wiki/Sir_Stafford_Cripps" class="mw-redirect" title="Sir Stafford Cripps">Sir Stafford Cripps</a>, <a href="/wiki/President_of_the_Board_of_Trade" title="President of the Board of Trade">President of the Board of Trade</a> introducing the <a href="/wiki/Companies_Act_1947" title="Companies Act 1947">Companies Act 1947</a>.<sup id="cite_ref-111" class="reference"><a href="#cite_note-111"><span class="cite-bracket">[</span>111<span class="cite-bracket">]</span></a></sup></cite></div> </div> <p>In the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> there is no duty to maximise profits for shareholders,<sup id="cite_ref-112" class="reference"><a href="#cite_note-112"><span class="cite-bracket">[</span>112<span class="cite-bracket">]</span></a></sup> and shareholders have few rights, because the word "shareholder" (those who usually invest capital in a company) is rarely used. Instead, "members" have rights in UK company law. Anybody can become a company member through agreement with others involved in a new or existing company. However, because of the <a href="/wiki/Inequality_of_bargaining_power" title="Inequality of bargaining power">bargaining position</a> that people have through capital investment, shareholders typically are the only members, and usually have a monopoly on governance rights under a constitution. In this way, the UK is a "pro-shareholder" jurisdiction relative to its European and American counterparts. Since the <i><a href="/wiki/Report_of_the_Committee_on_Company_Law_Amendment" title="Report of the Committee on Company Law Amendment">Report of the Committee on Company Law Amendment</a></i>, chaired in 1945 by <a href="/wiki/Lionel_Cohen,_Baron_Cohen" title="Lionel Cohen, Baron Cohen">Lord Cohen</a>, led to the <a href="/wiki/Companies_Act_1947" title="Companies Act 1947">Companies Act 1947</a>, as members and voters in the general meeting of public companies,<sup id="cite_ref-113" class="reference"><a href="#cite_note-113"><span class="cite-bracket">[</span>113<span class="cite-bracket">]</span></a></sup> shareholders have the mandatory right to remove directors by a simple majority,<sup id="cite_ref-114" class="reference"><a href="#cite_note-114"><span class="cite-bracket">[</span>114<span class="cite-bracket">]</span></a></sup> while in Germany,<sup id="cite_ref-115" class="reference"><a href="#cite_note-115"><span class="cite-bracket">[</span>115<span class="cite-bracket">]</span></a></sup> and in most American companies (predominantly incorporated in <a href="/wiki/Delaware_General_Corporation_Law" title="Delaware General Corporation Law">Delaware</a>) directors can only be removed for a "good reason".<sup id="cite_ref-116" class="reference"><a href="#cite_note-116"><span class="cite-bracket">[</span>116<span class="cite-bracket">]</span></a></sup> Shareholders will habitually have the right to change the company's constitution with a three quarter majority vote, unless they have chosen to entrench the constitution with a higher threshold.<sup id="cite_ref-117" class="reference"><a href="#cite_note-117"><span class="cite-bracket">[</span>117<span class="cite-bracket">]</span></a></sup> Shareholders with support of 5 per cent of the total vote can call <a href="/wiki/Shareholders%27_meeting" class="mw-redirect" title="Shareholders' meeting">meetings</a>,<sup id="cite_ref-118" class="reference"><a href="#cite_note-118"><span class="cite-bracket">[</span>118<span class="cite-bracket">]</span></a></sup> and can circulate suggestions for resolutions with support of 5 per cent of the total vote, or any one hundred other shareholders holding over £100 in shares each.<sup id="cite_ref-119" class="reference"><a href="#cite_note-119"><span class="cite-bracket">[</span>119<span class="cite-bracket">]</span></a></sup> Categories of important decisions, such as large asset sales,<sup id="cite_ref-120" class="reference"><a href="#cite_note-120"><span class="cite-bracket">[</span>120<span class="cite-bracket">]</span></a></sup> approval of mergers, takeovers, winding up of the company, any expenditure on political donations,<sup id="cite_ref-121" class="reference"><a href="#cite_note-121"><span class="cite-bracket">[</span>121<span class="cite-bracket">]</span></a></sup> share buybacks, or a (for the time being) non-binding <a href="/wiki/Say_on_pay" title="Say on pay">say on pay</a> of directors,<sup id="cite_ref-122" class="reference"><a href="#cite_note-122"><span class="cite-bracket">[</span>122<span class="cite-bracket">]</span></a></sup> are reserved exclusively for the shareholder body. </p> <div class="mw-heading mw-heading3"><h3 id="Investor_rights">Investor rights</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=11" title="Edit section: Investor rights"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Paternoster_Square.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/4/48/Paternoster_Square.jpg/220px-Paternoster_Square.jpg" decoding="async" width="220" height="165" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/4/48/Paternoster_Square.jpg/330px-Paternoster_Square.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/4/48/Paternoster_Square.jpg/440px-Paternoster_Square.jpg 2x" data-file-width="1600" data-file-height="1200" /></a><figcaption>The <a href="/wiki/London_Stock_Exchange" title="London Stock Exchange">London Stock Exchange</a>, at <a href="/wiki/Paternoster_Square" title="Paternoster Square">Paternoster Square</a>, lists most public companies. Shareholder voting rights are not yet exercised by elected representatives of economic investors, and are mostly appropriated by asset managers with potential <a href="/wiki/Conflicts_of_interest" class="mw-redirect" title="Conflicts of interest">conflicts of interest</a>.<sup id="cite_ref-123" class="reference"><a href="#cite_note-123"><span class="cite-bracket">[</span>123<span class="cite-bracket">]</span></a></sup></figcaption></figure> <p>While shareholders have a privileged position in UK corporate governance, most are themselves, institutions - mainly <a href="/wiki/Asset_managers" class="mw-redirect" title="Asset managers">asset managers</a> - holding "other people's money" from pension funds, life insurance policies and mutual funds.<sup id="cite_ref-124" class="reference"><a href="#cite_note-124"><span class="cite-bracket">[</span>124<span class="cite-bracket">]</span></a></sup> Shareholding institutions, who are entered on the share registers of public companies on the <a href="/wiki/London_Stock_Exchange" title="London Stock Exchange">London Stock Exchange</a>, are mainly <a href="/wiki/Asset_managers" class="mw-redirect" title="Asset managers">asset managers</a> and they infrequently exercise their governance rights.<sup id="cite_ref-125" class="reference"><a href="#cite_note-125"><span class="cite-bracket">[</span>125<span class="cite-bracket">]</span></a></sup> In turn, asset managers take money from other <a href="/wiki/Institutional_investors" class="mw-redirect" title="Institutional investors">institutional investors</a>, particularly <a href="/wiki/Pension_fund" title="Pension fund">pension funds</a>, <a href="/wiki/Mutual_fund" title="Mutual fund">mutual funds</a> and <a href="/wiki/Insurance_fund" class="mw-redirect" title="Insurance fund">insurance funds</a>, own most shares. Thousands or perhaps millions of persons, particularly through <a href="/wiki/Pensions_in_the_United_Kingdom" title="Pensions in the United Kingdom">pensions</a>, are <a href="/wiki/Beneficiary" title="Beneficiary">beneficiaries</a> from the returns on shares. Historically, institutions have often not voted or participated in general meetings on their beneficiaries' behalf, and often display an uncritical pattern of supporting management. Under the <a href="/wiki/Pensions_Act_2004" title="Pensions Act 2004">Pensions Act 2004</a> sections 241 to 243 require that pension fund trustees are elected or appointed to be accountable to the beneficiaries of the fund, while the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> section 168 ensures that directors are accountable to shareholders. However, the rules of <a href="/wiki/English_contract_law" title="English contract law">contract</a>, <a href="/wiki/English_trust_law" title="English trust law">equity</a> and <a href="/wiki/Fiduciary_duty" class="mw-redirect" title="Fiduciary duty">fiduciary duty</a> that operate between asset managers and the real capital investors have not been codified. Government reports have suggested,<sup id="cite_ref-126" class="reference"><a href="#cite_note-126"><span class="cite-bracket">[</span>126<span class="cite-bracket">]</span></a></sup> and case law requires,<sup id="cite_ref-127" class="reference"><a href="#cite_note-127"><span class="cite-bracket">[</span>127<span class="cite-bracket">]</span></a></sup> that asset managers follow the instructions about voting rights from investors in <a href="/wiki/Pooled_funds" class="mw-redirect" title="Pooled funds">pooled funds</a> according to the proportion of their investment, and follow instructions entirely when investors have separate accounts.<sup id="cite_ref-128" class="reference"><a href="#cite_note-128"><span class="cite-bracket">[</span>128<span class="cite-bracket">]</span></a></sup> Some institutional investors have been found to work "behind the scenes" to achieve corporate governance objectives through informal but direct communication with management,<sup id="cite_ref-129" class="reference"><a href="#cite_note-129"><span class="cite-bracket">[</span>129<span class="cite-bracket">]</span></a></sup> although an increasing concern developed after the <a href="/wiki/2007%E2%80%932008_financial_crisis" title="2007–2008 financial crisis">2007–2008 financial crisis</a> that asset managers and all financial intermediaries face structural <a href="/wiki/Conflicts_of_interest" class="mw-redirect" title="Conflicts of interest">conflicts of interest</a> and should be banned from voting on other people's money entirely.<sup id="cite_ref-130" class="reference"><a href="#cite_note-130"><span class="cite-bracket">[</span>130<span class="cite-bracket">]</span></a></sup> Individual shareholders form an increasingly small part of total investments, while foreign investment and institutional investor ownership have grown their share steadily over the last forty years. Institutional investors, who deal with other people's money, are bound by <a href="/wiki/Fiduciary" title="Fiduciary">fiduciary</a> obligations, deriving from the law of <a href="/wiki/English_trusts_law" class="mw-redirect" title="English trusts law">trusts</a> and obligations to exercise care deriving from the <a href="/wiki/Common_law" title="Common law">common law</a>. The <a href="/wiki/Stewardship_Code" title="Stewardship Code">Stewardship Code</a> 2010, drafted by the <a href="/wiki/Financial_Reporting_Council" title="Financial Reporting Council">Financial Reporting Council</a> (the corporate governance watchdog), reinforces the duty on institutions to actively engage in governance affairs by disclosing their voting policy, voting record and voting. The aim is to make directors more accountable, at least, to investors of capital. </p> <div class="mw-heading mw-heading3"><h3 id="Employees'_rights"><span id="Employees.27_rights"></span>Employees' rights</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=12" title="Edit section: Employees' rights"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Workplace_participation_in_the_United_Kingdom" title="Workplace participation in the United Kingdom">Workplace participation in the United Kingdom</a>, <a href="/wiki/Codetermination" class="mw-redirect" title="Codetermination">Codetermination</a>, <a href="/wiki/UK_labour_law" class="mw-redirect" title="UK labour law">UK labour law</a>, and <a href="/wiki/Bullock_Report" class="mw-redirect" title="Bullock Report">Bullock Report</a></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Workplace_participation_sources" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_participation" title="Template:Clist participation"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_participation" title="Template talk:Clist participation"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_participation" title="Special:EditPage/Template:Clist participation"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Workplace_participation_sources" style="font-size:114%;margin:0 4em">Workplace participation sources</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 112 and 168</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Bullock_Report" class="mw-redirect" title="Bullock Report">Bullock Report</a> (1977) Cmnd 6707</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Draft_Fifth_Company_Law_Directive" title="Draft Fifth Company Law Directive">Draft Fifth Company Law Directive</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/European_Company_Regulation" class="mw-redirect" title="European Company Regulation">European Company Regulation</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32001R2157:EN:HTML">2157/2001</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Employee_Involvement_Directive" class="mw-redirect" title="Employee Involvement Directive">Employee Involvement Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32001L0086:EN:NOT">2001/86/EC</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/w/index.php?title=Cross_Border_Merger_Directive&action=edit&redlink=1" class="new" title="Cross Border Merger Directive (page does not exist)">Cross Border Merger Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32005L0056:EN:HTML">2005/56/EC</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Pensions_Act_2004" title="Pensions Act 2004">Pensions Act 2004</a> ss 241-243</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Health_and_Safety_at_Work_Act_1974" class="mw-redirect" title="Health and Safety at Work Act 1974">Health and Safety at Work Act 1974</a> s 2</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/w/index.php?title=Workplace_participation_in_the_UK&action=edit&redlink=1" class="new" title="Workplace participation in the UK (page does not exist)">Workplace participation in the UK</a></div></td></tr></tbody></table></div> <p>While it has not been the norm, employee participation rights in corporate governance have existed in many specific sectors, particularly <a href="/wiki/Universities" class="mw-redirect" title="Universities">universities</a>, and many workplaces organised as <a href="/wiki/Partnerships" class="mw-redirect" title="Partnerships">partnerships</a>.<sup id="cite_ref-131" class="reference"><a href="#cite_note-131"><span class="cite-bracket">[</span>131<span class="cite-bracket">]</span></a></sup> Since the turn of the 20th century Acts such as the <a href="/wiki/Port_of_London_Act_1908" title="Port of London Act 1908">Port of London Act 1908</a>, <a href="/wiki/Iron_and_Steel_Act_1967" title="Iron and Steel Act 1967">Iron and Steel Act 1967</a>, or the <a href="/wiki/Post_Office_Act_1977" title="Post Office Act 1977">Post Office Act 1977</a>, all workers in those specific companies had votes to elect directors on the board, meaning the UK had some of the first "<a href="/wiki/Codetermination" class="mw-redirect" title="Codetermination">codetermination</a>" laws in the world.<sup id="cite_ref-132" class="reference"><a href="#cite_note-132"><span class="cite-bracket">[</span>132<span class="cite-bracket">]</span></a></sup> However, as many of those Acts were updated, the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> today still has no general requirement for workers to vote in the <a href="/wiki/General_meeting" class="mw-redirect" title="General meeting">general meeting</a> to elect directors, meaning <a href="/wiki/Corporate_governance" title="Corporate governance">corporate governance</a> remains monopolised by shareholding institutions or <a href="/wiki/Asset_managers" class="mw-redirect" title="Asset managers">asset managers</a>. By contrast in 16 out of 28 <a href="/wiki/European_Union" title="European Union">EU</a> member states employees have participation rights in private companies, including the election of members of the boards of directors, and binding votes on decisions about individual employment rights, like dismissals, working time and social facilities or accommodation.<sup id="cite_ref-133" class="reference"><a href="#cite_note-133"><span class="cite-bracket">[</span>133<span class="cite-bracket">]</span></a></sup> At board level, <a href="/wiki/UK_company_law" class="mw-redirect" title="UK company law">UK company law</a>, in principle, allows any measure of employee participation, alongside shareholders, but voluntary measures have been rare outside employee share schemes that usually carry very little voice and increase employees' financial risk. Crucially, the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> section 168 defines "members" as those with the ability to vote out the board. Under section 112 a "member" is anybody who initially subscribes their name to the company memorandum, or is later entered on the members' register, and is not required to have contributed money as opposed to, for instance, work. A company could write its constitution to make "employees" members with voting rights under any terms it chose. </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Cambridge_-_MathematicalBridge.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/9/9e/Cambridge_-_MathematicalBridge.jpg/220px-Cambridge_-_MathematicalBridge.jpg" decoding="async" width="220" height="147" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/9/9e/Cambridge_-_MathematicalBridge.jpg/330px-Cambridge_-_MathematicalBridge.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/9/9e/Cambridge_-_MathematicalBridge.jpg/440px-Cambridge_-_MathematicalBridge.jpg 2x" data-file-width="5477" data-file-height="3651" /></a><figcaption><a href="/wiki/Universities_in_the_UK" class="mw-redirect" title="Universities in the UK">Universities in the UK</a> are generally required to give staff members a right to vote for the board of managers at the head of <a href="/wiki/Corporate_governance" title="Corporate governance">corporate governance</a>, such as in the <a href="/wiki/Oxford_University_Act_1854" title="Oxford University Act 1854">Oxford University Act 1854</a>, or the <a href="/wiki/Cambridge_University_Act_1856" title="Cambridge University Act 1856">Cambridge University Act 1856</a>.<sup id="cite_ref-134" class="reference"><a href="#cite_note-134"><span class="cite-bracket">[</span>134<span class="cite-bracket">]</span></a></sup></figcaption></figure> <p>In addition to national rules, under the <a href="/wiki/European_Company_Statute" class="mw-redirect" title="European Company Statute">European Company Statute</a>, businesses that reincorporate as a <a href="/wiki/Societas_Europaea" title="Societas Europaea">Societas Europaea</a> may opt to follow the Directive for employee involvement.<sup id="cite_ref-135" class="reference"><a href="#cite_note-135"><span class="cite-bracket">[</span>135<span class="cite-bracket">]</span></a></sup> An SE may have a two-tiered board, as in <a href="/wiki/German_company_law" title="German company law">German companies</a>, where shareholders and employees elect a supervisory board that in turn appoints a management board responsible for day-to-day running of the company. Or an SE can have a one tiered board, as every UK company, and employees and shareholders may elect board members in the desired proportion.<sup id="cite_ref-136" class="reference"><a href="#cite_note-136"><span class="cite-bracket">[</span>136<span class="cite-bracket">]</span></a></sup> An "SE" can have no fewer employee participation rights than what existed before, but for a UK company, there is likely to have been no participation in any case. In the 1977 <i><a href="/wiki/Report_of_the_committee_of_inquiry_on_industrial_democracy" title="Report of the committee of inquiry on industrial democracy">Report of the committee of inquiry on industrial democracy</a></i><sup id="cite_ref-137" class="reference"><a href="#cite_note-137"><span class="cite-bracket">[</span>137<span class="cite-bracket">]</span></a></sup> the Government proposed, in line with the new German <a href="/wiki/Codetermination_Act_1976" class="mw-redirect" title="Codetermination Act 1976">Codetermination Act 1976</a>, and mirroring an EU <a href="/wiki/Draft_Fifth_Company_Law_Directive" title="Draft Fifth Company Law Directive">Draft Fifth Company Law Directive</a>, that the <a href="/wiki/Board_of_directors" title="Board of directors">board of directors</a> should have an equal number of representatives elected by employees as there were for shareholders. But reform stalled, and was abandoned after the <a href="/wiki/1979_United_Kingdom_general_election" title="1979 United Kingdom general election">1979 election</a>.<sup id="cite_ref-138" class="reference"><a href="#cite_note-138"><span class="cite-bracket">[</span>138<span class="cite-bracket">]</span></a></sup> Despite successful businesses like the <a href="/wiki/John_Lewis_Partnership" title="John Lewis Partnership">John Lewis Partnership</a> and <a href="/wiki/Waitrose" title="Waitrose">Waitrose</a> that are wholly managed and owned by the workforce, voluntary granting of participation is rare. Many businesses run <a href="/wiki/Employee_share_schemes" class="mw-redirect" title="Employee share schemes">employee share schemes</a>, particularly for highly paid employees; however, such shares seldom compose more than a small percentage of capital in the company, and these investments entail heavy risks for workers, given the lack of <a href="/wiki/Diversification_(finance)" title="Diversification (finance)">diversification</a>.<sup id="cite_ref-139" class="reference"><a href="#cite_note-139"><span class="cite-bracket">[</span>139<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Directors'_duties"><span id="Directors.27_duties"></span>Directors' duties</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=13" title="Edit section: Directors' duties"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Directors%27_duties_in_the_United_Kingdom" title="Directors' duties in the United Kingdom">Directors' duties in the United Kingdom</a>, <a href="/wiki/Directors%27_duties" title="Directors' duties">Directors' duties</a>, <a href="/wiki/Board_of_directors" title="Board of directors">Board of directors</a>, and <a href="/wiki/Fiduciary" title="Fiduciary">Fiduciary</a></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Director_duty_cases" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_director_duties" title="Template:Clist director duties"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_director_duties" title="Template talk:Clist director duties"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_director_duties" title="Special:EditPage/Template:Clist director duties"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Director_duty_cases" style="font-size:114%;margin:0 4em">Director duty cases</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/The_Charitable_Corporation_v_Sutton" class="mw-redirect" title="The Charitable Corporation v Sutton">The Charitable Corporation v Sutton</a></i> (1742) 26 ER 642</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Aberdeen_Railway_Co_v_Blaikie_Brothers" class="mw-redirect" title="Aberdeen Railway Co v Blaikie Brothers">Aberdeen Railway Co v Blaikie Brothers</a></i> (1854) 1 Macq HL 461</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Percival_v_Wright" title="Percival v Wright">Percival v Wright</a></i> [1902] 2 Ch 421</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Cook_v_Deeks" title="Cook v Deeks">Cook v Deeks</a></i> [1916] 1 AC 554</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_City_Equitable_Fire_Insurance_Co" title="Re City Equitable Fire Insurance Co">Re City Equitable Fire Insurance Co</a></i> [1925] Ch 407</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Smith_and_Fawcett_Ltd" class="mw-redirect" title="Re Smith and Fawcett Ltd">Re Smith and Fawcett Ltd</a></i> [1942] 1 Ch 304</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Regal_(Hastings)_Ltd_v_Gulliver" title="Regal (Hastings) Ltd v Gulliver">Regal (Hastings) Ltd v Gulliver</a></i> [1942] 1 All ER 378</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/IDC_Ltd_v_Cooley" class="mw-redirect" title="IDC Ltd v Cooley">IDC Ltd v Cooley</a></i> [1972] 1 WLR 443</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Howard_Smith_Ltd_v_Ampol_Petroleum_Ltd" title="Howard Smith Ltd v Ampol Petroleum Ltd">Howard Smith Ltd v Ampol Petroleum Ltd</a></i> [1974] AC 821</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=Re_Lo-Line_Electric_Motors_Ltd&action=edit&redlink=1" class="new" title="Re Lo-Line Electric Motors Ltd (page does not exist)">Re Lo-Line Electric Motors Ltd</a></i> [1988] Ch 477</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Sevenoaks_Stationers_(Retail)_Ltd" title="Re Sevenoaks Stationers (Retail) Ltd">Re Sevenoaks Stationers (Retail) Ltd</a></i> [1991] Ch 164</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_D%27Jan_of_London_Ltd" title="Re D'Jan of London Ltd">Re D’Jan of London Ltd</a></i> [1994] 1 BCLC 561</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Barings_plc_(No_5)" title="Re Barings plc (No 5)">Re Barings plc (No 5)</a></i> [1999] 1 BCLC 433</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Peskin_v_Anderson" title="Peskin v Anderson">Peskin v Anderson</a></i> [2000] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/2000/326.html">EWCA Civ 326</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/CMS_Dolphin_Ltd_v_Simonet" title="CMS Dolphin Ltd v Simonet">CMS Dolphin Ltd v Simonet</a></i> [2001] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWHC/Ch/2001/415.html">EWHC (Ch) 4159</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Bhullar_v_Bhullar" title="Bhullar v Bhullar">Bhullar v Bhullar</a></i> [2003] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/2003/424.html">EWCA Civ 424</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Eclairs_Group_Ltd_v_JKX_Oil_%26_Gas_plc" title="Eclairs Group Ltd v JKX Oil & Gas plc">Eclairs Group Ltd v JKX Oil & Gas plc</a></i> [2015] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKSC/2015/71.html">UKSC 71</a></div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/wiki/UK_company_law" class="mw-redirect" title="UK company law">UK company law</a></div></td></tr></tbody></table></div> <p>Directors appointed to the <a href="/wiki/Board_of_directors" title="Board of directors">board</a> form the central authority in UK companies. In carrying out their functions, directors (whether formally appointed, <i><a href="/wiki/De_facto" title="De facto">de facto</a></i>, or "<a href="/wiki/Shadow_director" class="mw-redirect" title="Shadow director">shadow directors</a>"<sup id="cite_ref-140" class="reference"><a href="#cite_note-140"><span class="cite-bracket">[</span>140<span class="cite-bracket">]</span></a></sup>) owe a series of duties to the company.<sup id="cite_ref-141" class="reference"><a href="#cite_note-141"><span class="cite-bracket">[</span>141<span class="cite-bracket">]</span></a></sup> There are presently seven key duties codified under the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> sections 171 to 177, which reflect the common law and equitable principles. These may not be limited, waived or contracted out of, but companies may buy insurance to cover directors for costs in the event of breach.<sup id="cite_ref-142" class="reference"><a href="#cite_note-142"><span class="cite-bracket">[</span>142<span class="cite-bracket">]</span></a></sup> The remedies for breaches of duty were not codified, but follow common law and equity, and include <a href="/wiki/Damages" title="Damages">compensation</a> for losses, <a href="/wiki/Restitution" class="mw-redirect" title="Restitution">restitution</a> of illegitimate gains and <a href="/wiki/Specific_performance" title="Specific performance">specific performance</a> or <a href="/wiki/Injunction" title="Injunction">injunctions</a>.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (April 2020)">citation needed</span></a></i>]</sup> </p><p>The first director's duty under section 171 is to follow the company's constitution, but also only exercise powers for implied "proper purposes". Prior proper purpose cases often involved directors plundering the company's assets for personal enrichment,<sup id="cite_ref-143" class="reference"><a href="#cite_note-143"><span class="cite-bracket">[</span>143<span class="cite-bracket">]</span></a></sup> or attempting to install mechanisms to frustrate attempted <a href="/wiki/Takeovers" class="mw-redirect" title="Takeovers">takeovers</a> by outside bidders,<sup id="cite_ref-144" class="reference"><a href="#cite_note-144"><span class="cite-bracket">[</span>144<span class="cite-bracket">]</span></a></sup> such as a <a href="/wiki/Shareholder_rights_plan" title="Shareholder rights plan">poison pill</a>.<sup id="cite_ref-145" class="reference"><a href="#cite_note-145"><span class="cite-bracket">[</span>145<span class="cite-bracket">]</span></a></sup> Such practices are improper, because they go beyond the reason for which directors were delegated their power. The all-important duty of care is found in section 174. Directors must display the care, skill and competence that is reasonable for somebody carrying out the functions of the office, and if a director has any special qualifications an even higher standard will be expected. However, under section 1157 courts may, if directors are negligent but found to be honest and ought to be excused, relieve directors from paying compensation. The "objective plus subjective" standard was first introduced in the <a href="/wiki/Wrongful_trading" title="Wrongful trading">wrongful trading</a> provision from the <a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a>,<sup id="cite_ref-146" class="reference"><a href="#cite_note-146"><span class="cite-bracket">[</span>146<span class="cite-bracket">]</span></a></sup> and applied in <i><a href="/wiki/Re_D%27Jan_of_London_Ltd" title="Re D'Jan of London Ltd">Re D'Jan of London Ltd</a></i>.<sup id="cite_ref-147" class="reference"><a href="#cite_note-147"><span class="cite-bracket">[</span>147<span class="cite-bracket">]</span></a></sup> The liquidator sought to recover compensation from Mr D'Jan, who failing to read an insurance policy form, did not disclose he was previously the director of an insolvent company. The policy was void when the company's warehouse burnt down. <a href="/wiki/Hoffmann_LJ" class="mw-redirect" title="Hoffmann LJ">Hoffmann LJ</a> held Mr D'Jan's failure was negligent, but exercised discretion to relieve liability on the ground that he owned almost all of his small business and had only put his own money at risk. The courts emphasise that they will not judge business decisions unfavourably with the benefit of hindsight,<sup id="cite_ref-148" class="reference"><a href="#cite_note-148"><span class="cite-bracket">[</span>148<span class="cite-bracket">]</span></a></sup> however simple procedural failures of judgment will be vulnerable. Cases under the <a href="/wiki/Company_Director_Disqualification_Act_1986" class="mw-redirect" title="Company Director Disqualification Act 1986">Company Director Disqualification Act 1986</a>, such as <i><a href="/wiki/Re_Barings_plc_(No_5)" title="Re Barings plc (No 5)">Re Barings plc (No 5)</a></i><sup id="cite_ref-auto_96-1" class="reference"><a href="#cite_note-auto-96"><span class="cite-bracket">[</span>96<span class="cite-bracket">]</span></a></sup> show that directors will also be liable for failing to adequately supervise employees or have effective risk management systems, as where the London directors ignored a warning report about the currency exchange business in Singapore, where a <a href="/wiki/Rogue_trader" title="Rogue trader">rogue trader</a> caused losses so massive that it brought the whole bank into insolvency. </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Edward_Matthew_Ward_(1816-1879)_-_The_South_Sea_Bubble,_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/c/c2/Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg/220px-Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg" decoding="async" width="220" height="150" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/c/c2/Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg/330px-Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/c/c2/Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg/440px-Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg 2x" data-file-width="964" data-file-height="658" /></a><figcaption><i><a href="/wiki/The_South_Sea_Bubble" title="The South Sea Bubble">The South Sea Bubble</a></i> by <a href="/wiki/Edward_Matthew_Ward" title="Edward Matthew Ward">Edward Matthew Ward</a>. The duty to avoid any <i>possibility</i> of a <a href="/wiki/Conflict_of_interest" title="Conflict of interest">conflict of interest</a> for <a href="/wiki/Fiduciaries" class="mw-redirect" title="Fiduciaries">fiduciaries</a> has been engrained in <a href="/wiki/Law" title="Law">law</a> since the <a href="/wiki/Financial_crisis" title="Financial crisis">financial crisis</a> following the <a href="/wiki/South_Sea_Bubble" class="mw-redirect" title="South Sea Bubble">South Sea Bubble</a> of 1719.</figcaption></figure> <p>The central equitable principle applicable to directors is to avoid any possibility of a <a href="/wiki/Conflict_of_interest" title="Conflict of interest">conflict of interest</a>,<sup id="cite_ref-149" class="reference"><a href="#cite_note-149"><span class="cite-bracket">[</span>149<span class="cite-bracket">]</span></a></sup> without disclosure to the board or seeking approval from shareholders. This core duty of loyalty is manifested firstly in section 175 which specifies that directors may not use business opportunities that the company could without approval. Shareholders may pass a resolution ratifying a breach of duty, but under section 239 they must be uninterested in the transaction. This absolute, strict duty has been consistently reaffirmed since the economic crisis following the <a href="/wiki/South_Sea_Bubble" class="mw-redirect" title="South Sea Bubble">South Sea Bubble</a> in 1719.<sup id="cite_ref-150" class="reference"><a href="#cite_note-150"><span class="cite-bracket">[</span>150<span class="cite-bracket">]</span></a></sup> For example, in <i><a href="/wiki/Cook_v_Deeks" title="Cook v Deeks">Cook v Deeks</a></i>,<sup id="cite_ref-151" class="reference"><a href="#cite_note-151"><span class="cite-bracket">[</span>151<span class="cite-bracket">]</span></a></sup> three directors took a railway line construction contract in their own names, rather than that of their company, to exclude a fourth director from the business. Even though the directors used their votes as shareholders to "ratify" their actions, the <a href="/wiki/Privy_Council" class="mw-redirect" title="Privy Council">Privy Council</a> advised that the conflict of interest precluded their ability to forgive themselves. Similarly, in <i><a href="/wiki/Bhullar_v_Bhullar" title="Bhullar v Bhullar">Bhullar v Bhullar</a></i>,<sup id="cite_ref-152" class="reference"><a href="#cite_note-152"><span class="cite-bracket">[</span>152<span class="cite-bracket">]</span></a></sup> a director on one side of a feuding family set up a company to buy a carpark next to one of the company's properties. The family company, amidst the feud, had in fact resolved to buy no further investment properties, but even so, because the director failed to fully disclose the opportunity that could reasonably be considered as falling within the company's line of business, the Court of Appeal held he was liable to make restitution for all profits made on the purchase. The duty of directors to avoid any <i>possibility</i> of a conflict of interest also exists after a director ceases employment with a company, so it is not permissible to resign and then take up a corporate opportunity, present or maturing, even though no longer officially a "director".<sup id="cite_ref-153" class="reference"><a href="#cite_note-153"><span class="cite-bracket">[</span>153<span class="cite-bracket">]</span></a></sup> </p> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1224211176"><div class="quotebox pullquote floatright" style="width:22em; ; color: #202122;background-color: #c6dbf7;"> <blockquote class="quotebox-quote left-aligned" style=""> <p>I do not think it is necessary, but it appears to me very important, that we should concur in laying down again and again the general principle that in this Court no agent in the course of his agency, in the matter of his agency, can be allowed to make any <a href="/wiki/Profit_(accounting)" title="Profit (accounting)">profit</a> without the <a href="/wiki/Knowledge" title="Knowledge">knowledge</a> and <a href="/wiki/Consent" title="Consent">consent</a> of his principal; that that rule is an inflexible rule, and must be applied inexorably by this Court, which is not entitled, in my judgment, to receive evidence, or suggestion, or argument as to whether the principal did or did not suffer any injury in fact by reason of the dealing of the agent; for the safety of <a href="/wiki/Human" title="Human">mankind</a> requires that no agent shall be able to put his principal to the danger of such an inquiry as that. </p> </blockquote> <div style="padding-bottom: 0; padding-top: 0.5em"><cite class="left-aligned" style="">James LJ, <i><a href="/wiki/Parker_v_McKenna" title="Parker v McKenna">Parker v McKenna</a></i> (1874-75) LR 10 Ch App 96, 124-125</cite></div> </div> <p>The purpose of the no conflict rule is to ensure directors carry out their tasks like it was their own interest at stake. Beyond corporate opportunities, the law requires directors accept no benefits from third parties under section 176, and also has specific regulation of transactions by a company with another party in which directors have an interest. Under section 177, when directors are on both sides of a proposed contract, for example where a person owns a business selling iron chairs to the company in which he is a director,<sup id="cite_ref-154" class="reference"><a href="#cite_note-154"><span class="cite-bracket">[</span>154<span class="cite-bracket">]</span></a></sup> it is a default requirement that they disclose the interest to the board, so that disinterested directors may approve the deal. The company's articles could heighten the requirement, say, to shareholder approval.<sup id="cite_ref-155" class="reference"><a href="#cite_note-155"><span class="cite-bracket">[</span>155<span class="cite-bracket">]</span></a></sup> If such a <a href="/wiki/Self_dealing" class="mw-redirect" title="Self dealing">self dealing</a> transaction has already taken place, directors still have a duty to disclose their interest and failure to do so is a criminal offence, subject to a £5000 fine.<sup id="cite_ref-156" class="reference"><a href="#cite_note-156"><span class="cite-bracket">[</span>156<span class="cite-bracket">]</span></a></sup> While such regulation through disclosure hovers with a relatively light touch, self dealing rules become more onerous as transactions become more significant. Shareholder approval is requisite for specific transactions with directors, or connected persons,<sup id="cite_ref-157" class="reference"><a href="#cite_note-157"><span class="cite-bracket">[</span>157<span class="cite-bracket">]</span></a></sup> when the sum of money either exceeds 10% of the company and is over £5000, or is over £100,000 in a company of any size. Further detailed provisions govern loaning money.<sup id="cite_ref-158" class="reference"><a href="#cite_note-158"><span class="cite-bracket">[</span>158<span class="cite-bracket">]</span></a></sup> On the question of director remuneration where the conflict of interest appears most serious, however, regulation is again relatively light. Directors pay themselves by default,<sup id="cite_ref-159" class="reference"><a href="#cite_note-159"><span class="cite-bracket">[</span>159<span class="cite-bracket">]</span></a></sup> but in large listed companies have pay set by a remuneration committee of directors. Under section 439, shareholders may cast a vote on remuneration but this "<a href="/wiki/Say_on_pay" title="Say on pay">say on pay</a>", as yet, is not binding. </p><p>Finally, under section 172 directors must "promote the success of the company". This somewhat nebulous provision created significant debate during its passage through Parliament, since it goes on to prescribe that decisions should be taken in the interests of members, with regard to long term consequences, the need to act fairly between members, and a range of other "<a href="/wiki/Stakeholder_(corporate)" title="Stakeholder (corporate)">stakeholders</a>", such as employees,<sup id="cite_ref-160" class="reference"><a href="#cite_note-160"><span class="cite-bracket">[</span>160<span class="cite-bracket">]</span></a></sup> suppliers, the environment, the general community,<sup id="cite_ref-161" class="reference"><a href="#cite_note-161"><span class="cite-bracket">[</span>161<span class="cite-bracket">]</span></a></sup> and creditors.<sup id="cite_ref-162" class="reference"><a href="#cite_note-162"><span class="cite-bracket">[</span>162<span class="cite-bracket">]</span></a></sup> Many groups objected to this "enlightened <a href="/wiki/Shareholder_value" title="Shareholder value">shareholder value</a>" model, which in form elevated the interests of members, who are invariably shareholders, above other stakeholders. However, the duty is particularly difficult to sue upon since it is only a duty for a director to do what she or "he considers, in good faith, would be most likely to promote the success of the company".<sup id="cite_ref-163" class="reference"><a href="#cite_note-163"><span class="cite-bracket">[</span>163<span class="cite-bracket">]</span></a></sup> Proof of subjective bad faith toward any group being difficult, directors have the discretion to balance all competing interests, even if to the short term detriment of shareholders in a particular instance. There is also a duty under section 173 to exercise independent judgment and the duty of care in section 174 applies to the decision-making process of a director having regard to the factors listed in section 172, so it remains theoretically possible to challenge a decision if made without any rational basis.<sup id="cite_ref-164" class="reference"><a href="#cite_note-164"><span class="cite-bracket">[</span>164<span class="cite-bracket">]</span></a></sup> Only registered shareholders, not other stakeholders without being members of the general meeting, have standing to claim any breach of the provision. But section 172's criteria are useful as an aspirational standard because in the annual <a href="/wiki/Director%27s_Report" class="mw-redirect" title="Director's Report">Director's Report</a> companies must explain how they have complied with their duties to stakeholders.<sup id="cite_ref-165" class="reference"><a href="#cite_note-165"><span class="cite-bracket">[</span>165<span class="cite-bracket">]</span></a></sup> Also, the idea of whether a company's success will be promoted is central when a court determines whether a derivative claim should proceed in the course of corporate litigation. </p> <div class="mw-heading mw-heading3"><h3 id="Corporate_litigation">Corporate litigation</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=14" title="Edit section: Corporate litigation"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Corporate_litigation_in_the_United_Kingdom" title="Corporate litigation in the United Kingdom">Corporate litigation in the United Kingdom</a>, <a href="/wiki/Derivative_suit" title="Derivative suit">Derivative suit</a>, and <a href="/wiki/Unfair_prejudice" class="mw-redirect" title="Unfair prejudice">Unfair prejudice</a></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Minority_protection_cases" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_minority_protection" title="Template:Clist minority protection"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_minority_protection" title="Template talk:Clist minority protection"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_minority_protection" title="Special:EditPage/Template:Clist minority protection"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Minority_protection_cases" style="font-size:114%;margin:0 4em">Minority protection cases</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 260-264</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Foss_v_Harbottle" title="Foss v Harbottle">Foss v Harbottle</a></i> (1843) 67 ER 189</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Southern_Foundries_(1926)_Ltd_v_Shirlaw" title="Southern Foundries (1926) Ltd v Shirlaw">Southern Foundries (1926) Ltd v Shirlaw</a></i> [1940] AC 701</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Edwards_v_Halliwell" title="Edwards v Halliwell">Edwards v Halliwell</a></i> [1950] 2 All ER 1064</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Greenhalgh_v_Arderne_Cinemas_Ltd" title="Greenhalgh v Arderne Cinemas Ltd">Greenhalgh v Arderne Cinemas Ltd</a></i> [1951] Ch 286</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Wallersteiner_v_Moir_(No_2)" title="Wallersteiner v Moir (No 2)">Wallersteiner v Moir (No 2)</a></i> [1975] QB 373</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Estmanco_v_Greater_London_Council" class="mw-redirect" title="Estmanco v Greater London Council">Estmanco v Greater London Council</a></i> [1982] 1 WLR 2</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Smith_v_Croft_(No_2)" title="Smith v Croft (No 2)">Smith v Croft (No 2)</a></i> [1988] Ch 114</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Johnson_v_Gore_Wood_%26_Co" title="Johnson v Gore Wood & Co">Johnson v Gore Wood & Co</a></i> [2000]</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Profinance_Trust_SA_v_Gladstone" title="Profinance Trust SA v Gladstone">Profinance Trust SA v Gladstone</a></i> [2001]</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 994-996</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Yenidje_Tobacco_Co_Ltd" title="Re Yenidje Tobacco Co Ltd">Re Yenidje Tobacco Co Ltd</a></i> [1916] 2 Ch 426</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Ebrahimi_v_Westbourne_Galleries_Ltd" title="Ebrahimi v Westbourne Galleries Ltd">Ebrahimi v Westbourne Galleries Ltd</a></i> [1973] AC 360</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Bird_Precision_Bellows_Ltd" title="Re Bird Precision Bellows Ltd">Re Bird Precision Bellows Ltd</a></i> [1984] Ch 658</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a> s 122(1)(g)</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_London_School_of_Electronics" class="mw-redirect" title="Re London School of Electronics">Re London School of Electronics</a></i> [1986] Ch 211</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/O%27Neill_v_Phillips" title="O'Neill v Phillips">O’Neill v Phillips</a></i> [1999]</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/wiki/UK_company_law" class="mw-redirect" title="UK company law">UK company law</a></div></td></tr></tbody></table></div> <p>Litigation among those within a company has historically been very restricted in UK law. The attitude of courts favoured non-interference. As <a href="/wiki/John_Scott,_1st_Earl_of_Eldon" title="John Scott, 1st Earl of Eldon">Lord Eldon</a> said in the old case of <i><a href="/wiki/Carlen_v_Drury" title="Carlen v Drury">Carlen v Drury</a></i>,<sup id="cite_ref-166" class="reference"><a href="#cite_note-166"><span class="cite-bracket">[</span>166<span class="cite-bracket">]</span></a></sup> "This Court is not required on every Occasion to take the Management of every Playhouse and Brewhouse in the Kingdom." If there were disagreements between the directors and shareholders about whether to pursue a claim, this was thought to be a question best left for the rules of internal management in a company's constitution, since litigation could legitimately be seen as costly or distracting from doing the company's real business. The <a href="/wiki/Board_of_directors" title="Board of directors">board of directors</a> invariably holds the right to sue in the company's name as a general power of management.<sup id="cite_ref-167" class="reference"><a href="#cite_note-167"><span class="cite-bracket">[</span>167<span class="cite-bracket">]</span></a></sup> So if wrongs were alleged to have been done to the company, the principle from the case of <i><a href="/wiki/Foss_v_Harbottle" title="Foss v Harbottle">Foss v Harbottle</a></i>,<sup id="cite_ref-168" class="reference"><a href="#cite_note-168"><span class="cite-bracket">[</span>168<span class="cite-bracket">]</span></a></sup> was that the company itself was the proper claimant, and it followed that as a general rule that only the board could bring claims in court. A majority of shareholders would also have the default right to start litigation,<sup id="cite_ref-169" class="reference"><a href="#cite_note-169"><span class="cite-bracket">[</span>169<span class="cite-bracket">]</span></a></sup> but the interest a minority shareholder had was seen as relative to the wishes of the majority. Aggrieved minorities could not, in general, sue. Only if the alleged wrongdoers were themselves in control, as directors or majority shareholder, would the courts allow an exception for a minority shareholder to derive the right from the company to launch a claim. </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/9/9d/Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg/220px-Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg" decoding="async" width="220" height="165" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/9/9d/Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg/330px-Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/9/9d/Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg/440px-Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg 2x" data-file-width="3219" data-file-height="2412" /></a><figcaption><a href="/wiki/Derivative_claim" class="mw-redirect" title="Derivative claim">Derivative claims</a> are used by shareholders against directors alleged to have breached their duties of care or loyalty, exemplified in current litigation against <a href="/wiki/BP" title="BP">BP</a> executives for losses connected to the <a href="/wiki/Deepwater_Horizon_oil_spill" title="Deepwater Horizon oil spill"><i>Deepwater Horizon</i> oil spill</a> catastrophe.</figcaption></figure> <p>In practice very few derivative claims were successfully brought, given the complexity and narrowness in the exceptions to the rule in <i><a href="/wiki/Foss_v_Harbottle" title="Foss v Harbottle">Foss v Harbottle</a></i>. This was witnessed by the fact that successful cases on directors' duties before the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> seldom involved minority shareholders, rather than a new board, or a liquidator in the shoes of an insolvent company, suing former directors. The new requirements to bring a "<a href="/wiki/Derivative_claim" class="mw-redirect" title="Derivative claim">derivative claim</a>" are now codified in the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> sections 261–264.<sup id="cite_ref-170" class="reference"><a href="#cite_note-170"><span class="cite-bracket">[</span>170<span class="cite-bracket">]</span></a></sup> Section 260 stipulates that such actions are concerned with suing directors for breach of a duty owed to the company. Under section 261 a shareholder must, first, show the court there is a good <i><a href="/wiki/Prima_facie" title="Prima facie">prima facie</a></i> case to be made. This preliminary legal question is followed by the substantive questions in section 263. The court must refuse permission for the claim if the alleged breach has already been validly authorised or ratified by disinterested shareholders,<sup id="cite_ref-171" class="reference"><a href="#cite_note-171"><span class="cite-bracket">[</span>171<span class="cite-bracket">]</span></a></sup> or if it appears that allowing litigation would undermine the company's success by the criteria laid out in section 172. If none of these "negative" criteria are fulfilled, the court then weighs up seven "positive" criteria. Again it asks whether, under the guidelines in section 172, allowing the action to continue would promote the company's success. It also asks whether the claimant is acting in good faith, whether the claimant could start an action in her own name,<sup id="cite_ref-172" class="reference"><a href="#cite_note-172"><span class="cite-bracket">[</span>172<span class="cite-bracket">]</span></a></sup> whether authorisation or ratification has happened or is likely to, and pays particular regard to the views of the independent and disinterested shareholders.<sup id="cite_ref-173" class="reference"><a href="#cite_note-173"><span class="cite-bracket">[</span>173<span class="cite-bracket">]</span></a></sup> This represented a shift from, and a replacement of,<sup id="cite_ref-174" class="reference"><a href="#cite_note-174"><span class="cite-bracket">[</span>174<span class="cite-bracket">]</span></a></sup> the complex pre-2006 position, by giving courts more discretion to allow meritorious claims. Still, the first cases showed the courts remaining conservative.<sup id="cite_ref-175" class="reference"><a href="#cite_note-175"><span class="cite-bracket">[</span>175<span class="cite-bracket">]</span></a></sup> In other respects the law remains the same. According to <i><a href="/wiki/Wallersteiner_v_Moir_(No_2)" title="Wallersteiner v Moir (No 2)">Wallersteiner v Moir (No 2)</a></i>,<sup id="cite_ref-176" class="reference"><a href="#cite_note-176"><span class="cite-bracket">[</span>176<span class="cite-bracket">]</span></a></sup> minority shareholders will be indemnified for the costs of a derivative claim by the company, even if it ultimately fails. </p><p>While derivative claims mean suing in the company's name, a minority shareholder can sue in her own name in four ways. The first is to claim a "personal right" under the constitution or the general law is breached.<sup id="cite_ref-177" class="reference"><a href="#cite_note-177"><span class="cite-bracket">[</span>177<span class="cite-bracket">]</span></a></sup> If a shareholder brings a personal action to vindicate a personal right (such as the right to not be misled by company circulars<sup id="cite_ref-178" class="reference"><a href="#cite_note-178"><span class="cite-bracket">[</span>178<span class="cite-bracket">]</span></a></sup>) the principle against double recovery dictates that one cannot sue for damages if the loss an individual shareholder suffers is merely the same as will be reflected in the reduction of the share value. For <a href="/wiki/Reflective_loss" title="Reflective loss">losses reflective</a> of the company's, only a derivative claim may be brought.<sup id="cite_ref-179" class="reference"><a href="#cite_note-179"><span class="cite-bracket">[</span>179<span class="cite-bracket">]</span></a></sup> The second is to show that a company's articles were amended in an objectively unjustifiably and directly discriminatory fashion. This residual protection for minorities was developed by the Court of Appeal in <i><a href="/wiki/Allen_v_Gold_Reefs_of_West_Africa_Ltd" title="Allen v Gold Reefs of West Africa Ltd">Allen v Gold Reefs of West Africa Ltd</a></i>,<sup id="cite_ref-180" class="reference"><a href="#cite_note-180"><span class="cite-bracket">[</span>180<span class="cite-bracket">]</span></a></sup> where <a href="/wiki/Sir_Nathaniel_Lindley_MR" class="mw-redirect" title="Sir Nathaniel Lindley MR">Sir Nathaniel Lindley MR</a> held that shareholders may amend a constitution by the required majority so long as it is "<i>bona fide</i> for the benefit of the company as a whole." This constraint is not heavy, as it can mean that a constitutional amendment, while applying in a formally equal way to all shareholders, has a negative and disparate impact on only one shareholder. This was so in <i><a href="/wiki/Greenhalgh_v_Arderne_Cinemas_Ltd" title="Greenhalgh v Arderne Cinemas Ltd">Greenhalgh v Arderne Cinemas Ltd</a></i>,<sup id="cite_ref-181" class="reference"><a href="#cite_note-181"><span class="cite-bracket">[</span>181<span class="cite-bracket">]</span></a></sup> where the articles were changed to remove all shareholders' pre-emption rights, but only one shareholder (the claimant, Mr Greenhalgh, who lost) was interested in preventing share sales to outside parties.<sup id="cite_ref-182" class="reference"><a href="#cite_note-182"><span class="cite-bracket">[</span>182<span class="cite-bracket">]</span></a></sup> This slim set of protections for minority shareholders was, until 1985, complemented only by a third, and drastic right of a shareholder, now under the <a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a> section 122(1)(g), to show it is "just and equitable" for a company to be liquidated. In <i><a href="/wiki/Ebrahimi_v_Westbourne_Galleries_Ltd" title="Ebrahimi v Westbourne Galleries Ltd">Ebrahimi v Westbourne Galleries Ltd</a></i>,<sup id="cite_ref-183" class="reference"><a href="#cite_note-183"><span class="cite-bracket">[</span>183<span class="cite-bracket">]</span></a></sup> <a href="/wiki/Lord_Wilberforce" class="mw-redirect" title="Lord Wilberforce">Lord Wilberforce</a> held that a court would use its discretion to wind up a company if three criteria were fulfilled: that the company was a small "quasi-partnership" founded on mutual confidence of the corporators, that shareholders participate in the business, and there are restrictions in the constitution on free transfer of shares. Given these features, it may be just and equitable to wind up a company if the court sees an agreement just short of a contract, or some other "equitable consideration", that one party has not fulfilled. So where Mr Ebrahmi, a minority shareholder, had been removed from the board, and the other two directors paid all company profits out as director salaries, rather than dividends to exclude him, the House of Lords regarded it as equitable to liquidate the company and distribute his share of the sale proceeds to Mr Ebrahimi. </p> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Royal_courts_of_justice.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/0/0e/Royal_courts_of_justice.jpg/220px-Royal_courts_of_justice.jpg" decoding="async" width="220" height="165" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/0/0e/Royal_courts_of_justice.jpg/330px-Royal_courts_of_justice.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/0/0e/Royal_courts_of_justice.jpg/440px-Royal_courts_of_justice.jpg 2x" data-file-width="1600" data-file-height="1200" /></a><figcaption>The most numerous type of case in company litigation involves <a href="/wiki/Unfair_prejudice" class="mw-redirect" title="Unfair prejudice">unfair prejudice</a> petitions in closely held businesses.</figcaption></figure> <p>The drastic remedy of liquidation was mitigated significantly as the <a href="/wiki/Unfair_prejudice" class="mw-redirect" title="Unfair prejudice">unfair prejudice</a> action was introduced by the <a href="/wiki/Companies_Act_1985" title="Companies Act 1985">Companies Act 1985</a>. Now under the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> section 996, a court can grant any remedy, but will often simply require that a minority shareholder's interest is bought out by the majority at a fair value. The cause of action, stated in section 994, is very broad. A shareholder must simply allege they have been prejudiced (i.e. their interests as a member have been harmed) in a way that is unfair. "Unfairness" is now given a minimum meaning identical to that in <i><a href="/wiki/Ebrahimi_v_Westbourne_Galleries_Ltd" title="Ebrahimi v Westbourne Galleries Ltd">Ebrahimi v Westbourne Galleries Ltd</a></i>. A court must at least have an "equitable consideration" to grant a remedy. Generally this will refer to an agreement between two or more corporators in a small business that is just short of being an enforceable contract, for the lack of legal <a href="/wiki/Consideration" title="Consideration">consideration</a>. A clear assurance, on which a corporator relies, which would be inequitable to go back on, would suffice, unlike the facts of the leading case, <i><a href="/wiki/O%27Neill_v_Phillips" title="O'Neill v Phillips">O'Neill v Phillips</a></i>.<sup id="cite_ref-184" class="reference"><a href="#cite_note-184"><span class="cite-bracket">[</span>184<span class="cite-bracket">]</span></a></sup> Here Mr O'Neill had been a prodigy in Mr Phillips' asbestos stripping business, and took on a greater and greater role until economic difficulties struck. Mr O'Neill was then demoted, but claimed that he should be given 50 per cent of the company's shares because negotiations had started for this to happen and Mr Phillips had said one day it might. <a href="/wiki/Lord_Hoffmann" class="mw-redirect" title="Lord Hoffmann">Lord Hoffmann</a> held that the vague aspiration that it "might" was not enough here: there was no concrete assurance or promise given, and so no unfairness in Mr Phillips' recanting. Unfair prejudice in this sense is an action not well suited to public companies,<sup id="cite_ref-185" class="reference"><a href="#cite_note-185"><span class="cite-bracket">[</span>185<span class="cite-bracket">]</span></a></sup> when the alleged obligations binding the company were potentially undisclosed to public investors in the constitution, since this would undermine the principle of transparency. However it is plain that minority shareholders can also bring claims for more serious breaches of obligation, such as breach of <a href="/wiki/Directors%27_duties" title="Directors' duties">directors' duties</a>.<sup id="cite_ref-186" class="reference"><a href="#cite_note-186"><span class="cite-bracket">[</span>186<span class="cite-bracket">]</span></a></sup> Unfair prejudice petitions remain most prevalent in small companies, and are the most numerous form of dispute to enter company courts.<sup id="cite_ref-187" class="reference"><a href="#cite_note-187"><span class="cite-bracket">[</span>187<span class="cite-bracket">]</span></a></sup> But if to hold directors accountable dispersed shareholders do not engage through voting, or through litigation, companies may be ripe for takeover. </p> <div class="mw-heading mw-heading2"><h2 id="Corporate_finance_and_markets">Corporate finance and markets</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=15" title="Edit section: Corporate finance and markets"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Corporate_finance" title="Corporate finance">Corporate finance</a></div> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Canary_Wharf_HSBC.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/d/d1/Canary_Wharf_HSBC.jpg/220px-Canary_Wharf_HSBC.jpg" decoding="async" width="220" height="293" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/d/d1/Canary_Wharf_HSBC.jpg/330px-Canary_Wharf_HSBC.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/d/d1/Canary_Wharf_HSBC.jpg/440px-Canary_Wharf_HSBC.jpg 2x" data-file-width="1536" data-file-height="2048" /></a><figcaption><a href="/wiki/London" title="London">London</a>'s new central business district, <a href="/wiki/Canary_Wharf" title="Canary Wharf">Canary Wharf</a> was formerly a major centre of the world's shipping trade at <a href="/wiki/West_India_Quay" title="West India Quay">West India Quay</a>.</figcaption></figure> <p>While corporate governance primarily concerns the general relative rights and duties of shareholders, employees and directors in terms of administration and accountability, <a href="/wiki/Corporate_finance" title="Corporate finance">corporate finance</a> concerns how the monetary or capital stake of shareholders and creditors are mediated, given the risk that the business may fail and become <a href="/wiki/Insolvent" class="mw-redirect" title="Insolvent">insolvent</a>. Companies can fund their operations either through debt (i.e. loans) or equity (i.e. shares). In return for loans, typically from a bank, companies will often be required by <a href="/wiki/English_contract_law" title="English contract law">contract</a> to give their <a href="/wiki/Creditor" title="Creditor">creditors</a> a <a href="/wiki/Security_interest" title="Security interest">security interest</a> over the company's assets, so that in the event of insolvency, the creditor may take the secured asset. The <a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a> limits powerful creditors ability to sweep up all company assets as security, particularly through a <a href="/wiki/Floating_charge" title="Floating charge">floating charge</a>, in favour of vulnerable creditors, such as employees or consumers. If money is raised by offering shares, the shareholders' relations are determined as a group by the provisions under the constitution.<sup id="cite_ref-188" class="reference"><a href="#cite_note-188"><span class="cite-bracket">[</span>188<span class="cite-bracket">]</span></a></sup> The law requires disclosure of all material facts in promotions, and prospectuses. Company constitutions typically require that existing shareholders have a <a href="/wiki/Pre-emption_right" title="Pre-emption right">pre-emption right</a>, to buy newly issued shares before outside shareholders and thus avoid their stake and control becoming <a href="/wiki/Stock_dilution" title="Stock dilution">diluted</a>. Actual rights, however, are determined by ordinary principles of construction of the company constitution.<sup id="cite_ref-189" class="reference"><a href="#cite_note-189"><span class="cite-bracket">[</span>189<span class="cite-bracket">]</span></a></sup> A host of rules exist to ensure that the company's capital (i.e. the amount that shareholders paid in when they bought their shares) is maintained for the benefit of creditors. Money is typically distributed to shareholders through <a href="/wiki/Dividend" title="Dividend">dividends</a> as the reward for investment. These should only come out of <a href="/wiki/Profit_(accounting)" title="Profit (accounting)">profits</a>, or surpluses beyond the capital account. If companies pay out money to shareholders which in effect is a dividend "disguised" as something else, directors will be liable for repayment. Companies may, however, reduce their capital to a lower figure if directors of private companies warrant solvency, or courts approve a public company's reduction. Because a company <a href="/wiki/Share_repurchase" title="Share repurchase">buying back shares</a> from shareholders in itself, or taking back redeemable shares, has the same effect as a reduction of capital, similar transparency and procedural requirements need to be fulfilled. Public companies are also precluded from giving <a href="/wiki/Financial_assistance_(share_purchase)" title="Financial assistance (share purchase)">financial assistance</a> for purchase of their shares, for example through a <a href="/wiki/Leveraged_buyout" title="Leveraged buyout">leveraged buyout</a>, unless the company is delisted and or taken private. Finally, in order to protect investors from being placed at an unfair disadvantage, people inside a company are under a strict duty to not <a href="/wiki/Insider_trading" title="Insider trading">trade on any information</a> that could affect a company's share price for their own benefit. </p> <div class="mw-heading mw-heading3"><h3 id="Debt_finance">Debt finance</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=16" title="Edit section: Debt finance"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Cases_on_secured_debt" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_co_security" title="Template:Clist co security"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_co_security" title="Template talk:Clist co security"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_co_security" title="Special:EditPage/Template:Clist co security"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Cases_on_secured_debt" style="font-size:114%;margin:0 4em">Cases on secured debt</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Holroyd_v_Marshall" title="Holroyd v Marshall">Holroyd v Marshall</a></i> (1862) 10 HLC 191</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/British_India_Steam_Navigation_Co_v_IRC" title="British India Steam Navigation Co v IRC">British India Steam Navigation Co v IRC</a></i> (1881) 7 QBD 165</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Salomon_v_A_Salomon_%26_Co_Ltd" title="Salomon v A Salomon & Co Ltd">Salomon v A Salomon & Co Ltd</a></i> [1897] AC 22</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Illingworth_v_Houldsworth" title="Illingworth v Houldsworth"><span class="wrap">Re Yorkshire Woolcombers Association Ltd</span></a></i> [1903] 2 Ch 284</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/National_Provincial_Bank_v_Charnley" title="National Provincial Bank v Charnley">National Provincial Bank v Charnley</a></i> [1924] 1 KB 431</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Barclays_Bank_Ltd_v_Quistclose_Investments_Ltd" title="Barclays Bank Ltd v Quistclose Investments Ltd">Barclays Bank Ltd v Quistclose Ltd</a></i> <a rel="nofollow" class="external text" href="https://www.bailii.org/uk/cases/UKHL/1968/4.html">[1968] UKHL 4</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/British_Eagle_International_Airlines_Ltd_v_Compagnie_Nationale_Air_France" title="British Eagle International Airlines Ltd v Compagnie Nationale Air France"><span class="wrap">British Eagle Ltd v Cie Nationale Air France</span></a></i> [1975] 1 WLR 758</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Aluminium_Industrie_Vaassen_BV_v_Romalpa_Aluminium_Ltd" title="Aluminium Industrie Vaassen BV v Romalpa Aluminium Ltd">Aluminium BV v Romalpa Aluminium Ltd</a></i> [1976] 1 WLR 676</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Bank_of_Credit_and_Commerce_International_SA_(No_8)" title="Re Bank of Credit and Commerce International SA (No 8)">Re BCCI SA (No 8)</a></i> [1998] AC 214</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Brumark_Investments_Ltd" title="Re Brumark Investments Ltd">Re Brumark Investments Ltd</a></i> <a rel="nofollow" class="external text" href="https://www.bailii.org/uk/cases/UKPC/2001/28.html">[2001] UKPC 28</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Spectrum_Plus_Ltd" title="Re Spectrum Plus Ltd">Re Spectrum Plus Ltd</a></i> <a rel="nofollow" class="external text" href="https://www.bailii.org/uk/cases/UKHL/2005/41.html">[2005] UKHL 41</a></div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/wiki/Security_interest" title="Security interest">Security interest</a> in <a href="/wiki/UK_company_law" class="mw-redirect" title="UK company law">UK company law</a></div></td></tr></tbody></table></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Security_interest" title="Security interest">Security interest</a></div> <ul><li>Corporate bonds to raise capital, determined by contract</li> <li>Priorities on insolvency through security, <a href="/wiki/IA_1986" class="mw-redirect" title="IA 1986">IA 1986</a> ss 40, 115, 175, 176A, 386, Sch 6 and SI 2003/2097</li> <li><a href="/wiki/Fixed_charge" class="mw-redirect" title="Fixed charge">Fixed charge</a> and <a href="/wiki/Floating_charge" title="Floating charge">floating charge</a>, <a href="/wiki/Re_Spectrum_Plus_Ltd" title="Re Spectrum Plus Ltd">Re Spectrum Plus Ltd</a> [2005] UKHL 41</li> <li>Registration of charges, <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss 738, 860-877</li></ul> <div class="mw-heading mw-heading3"><h3 id="Equity_finance">Equity finance</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=17" title="Edit section: Equity finance"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Sources_on_company_shares" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_shares" title="Template:Clist shares"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_shares" title="Template talk:Clist shares"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_shares" title="Special:EditPage/Template:Clist shares"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Sources_on_company_shares" style="font-size:114%;margin:0 4em">Sources on company shares</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Birch_v_Cropper" title="Birch v Cropper">Birch v Cropper</a></i> (1889) 14 App Cas 525</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Andrews_v_Gas_Meter_Co" title="Andrews v Gas Meter Co">Andrews v Gas Meter Co</a></i> [1897] 1 Ch 361</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Borland%E2%80%99s_Trustee_v_Steel_Brothers_%26_Co_Ltd" class="mw-redirect" title="Borland’s Trustee v Steel Brothers & Co Ltd"><span class="wrap">Borland’s Trustee v Steel Brothers & Co Ltd</span></a></i> [1901] 1 Ch 279</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 33 and <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/13/chapter/1">282-4</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Scottish_Insurance_Corp_v_Wilsons_%26_Clyde_Coal_Ltd" class="mw-redirect" title="Scottish Insurance Corp v Wilsons & Clyde Coal Ltd"><span class="wrap">Scottish Insurance Corp v Wilsons & Clyde Coal Ltd</span></a></i> [1949] AC 462</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=Dimbula_Valley_(Ceylon)_Tea_Co_v_Laurie&action=edit&redlink=1" class="new" title="Dimbula Valley (Ceylon) Tea Co v Laurie (page does not exist)">Dimbula Valley (Ceylon) Tea Co v Laurie</a></i> [1961] Ch 353</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=Will_v_United_Lankat_Plantations_Co_Ltd&action=edit&redlink=1" class="new" title="Will v United Lankat Plantations Co Ltd (page does not exist)">Will v United Lankat Plantations Co Ltd</a></i> [1914] AC 11</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=Re_Bradford_Investments_Ltd&action=edit&redlink=1" class="new" title="Re Bradford Investments Ltd (page does not exist)">Re Bradford Investments Ltd</a></i> [1991] BCLC 224</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Second_Company_Law_Directive" title="Second Company Law Directive">Second Company Law Directive</a> 77/91/EEC</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/17/chapter/2">549-551</a> and <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/17/chapter/3/crossheading/existing-shareholders-right-of-preemption">561-571</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 10 and <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/17/chapter/8">617</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=Re_Scandinavian_Banking_Group_plc&action=edit&redlink=1" class="new" title="Re Scandinavian Banking Group plc (page does not exist)">Re Scandinavian Banking Group plc</a></i> [1988] Ch 87</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/wiki/UK_company_law" class="mw-redirect" title="UK company law">UK company law</a></div></td></tr></tbody></table></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Share_capital" title="Share capital">Share capital</a>, <a href="/wiki/Authorised_share_capital" class="mw-redirect" title="Authorised share capital">Authorised share capital</a>, and <a href="/wiki/Issued_share_capital" class="mw-redirect" title="Issued share capital">Issued share capital</a></div> <p>Companies limited by shares also acquire finance through 'equity' (a synonym for the share capital). Shares differ from debt in that shareholders rank last in <a href="/wiki/UK_insolvency_law" class="mw-redirect" title="UK insolvency law">insolvency</a>. The main justification for shareholders' residual claim is that, unlike many creditors (though not large banks) they are capable of <a href="/wiki/Modern_portfolio_theory" title="Modern portfolio theory">diversifying their portfolio</a>. Taxation of profits on shares can also be treated differently with a different tax rate (under the <a href="/wiki/Income_Tax_Act_2007" title="Income Tax Act 2007">Income Tax Act 2007</a>) to <a href="/wiki/Capital_gains_tax" title="Capital gains tax">capital gains tax</a> on debt (which falls under the <a href="/wiki/Taxation_of_Chargeable_Gains_Act_1992" title="Taxation of Chargeable Gains Act 1992">Taxation of Chargeable Gains Act 1992</a>). This makes the distinction between shares and debt important. In principle, all forms of debt and equity arise from contractual arrangements with a company, and the rights which attach are a question of construction.<sup id="cite_ref-190" class="reference"><a href="#cite_note-190"><span class="cite-bracket">[</span>190<span class="cite-bracket">]</span></a></sup> For instance, in <i><a href="/wiki/Scottish_Insurance_Corp_Ltd_v_Wilsons_%26_Clyde_Coal_Co_Ltd" title="Scottish Insurance Corp Ltd v Wilsons & Clyde Coal Co Ltd">Scottish Insurance Corp Ltd v Wilsons & Clyde Coal Co Ltd</a></i> the House of Lords held that when the <a href="/wiki/Coal_Industry_Nationalisation_Act_1946" title="Coal Industry Nationalisation Act 1946">Coal Industry Nationalisation Act 1946</a> was passed, preferential shareholders were entitled to no extra, special share of assets upon winding up: construction of the terms of the shares entitled them to extra dividends, but without special words to the contrary, shareholders were presumed equal otherwise.<sup id="cite_ref-191" class="reference"><a href="#cite_note-191"><span class="cite-bracket">[</span>191<span class="cite-bracket">]</span></a></sup> For anyone to become a member of a company under the <a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> section 33, the contract for shares must simply manifest the intention to do so.<sup id="cite_ref-192" class="reference"><a href="#cite_note-192"><span class="cite-bracket">[</span>192<span class="cite-bracket">]</span></a></sup> However, beyond this, the dividing line between shares and debt is more a matter of standard practice than law.<sup id="cite_ref-193" class="reference"><a href="#cite_note-193"><span class="cite-bracket">[</span>193<span class="cite-bracket">]</span></a></sup> It is legally possible to become a member of the company without being a shareholder, simply by being accepted and registered on the members' register.<sup id="cite_ref-194" class="reference"><a href="#cite_note-194"><span class="cite-bracket">[</span>194<span class="cite-bracket">]</span></a></sup> It is also possible to be a shareholder without being a member immediately.<sup id="cite_ref-195" class="reference"><a href="#cite_note-195"><span class="cite-bracket">[</span>195<span class="cite-bracket">]</span></a></sup> It is standard practice that shareholders have one vote per share,<sup id="cite_ref-196" class="reference"><a href="#cite_note-196"><span class="cite-bracket">[</span>196<span class="cite-bracket">]</span></a></sup> but occasionally shareholders (particularly those with preferential dividend rights) do not have votes, and debt holders and others may have votes without having shares. It is even possible for creditors to contract to be subordinated behind shareholders in insolvency – it is just unlikely, and strongly discouraged by the regulatory framework. Shares are also presumed to be transferable to other people, although like other rights, the right to trade is subject to the company's constitution.<sup id="cite_ref-197" class="reference"><a href="#cite_note-197"><span class="cite-bracket">[</span>197<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Asset_Allocation.pdf" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/6/68/Asset_Allocation.pdf/page1-220px-Asset_Allocation.pdf.jpg" decoding="async" width="220" height="137" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/6/68/Asset_Allocation.pdf/page1-330px-Asset_Allocation.pdf.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/6/68/Asset_Allocation.pdf/page1-440px-Asset_Allocation.pdf.jpg 2x" data-file-width="606" data-file-height="377" /></a><figcaption><a href="/wiki/Modern_portfolio_theory" title="Modern portfolio theory">Modern portfolio theory</a> suggests a diversified portfolio of <a href="/wiki/Shares" class="mw-redirect" title="Shares">shares</a> and other <a href="/wiki/Asset_classes" title="Asset classes">asset classes</a> (such as debt in <a href="/wiki/Corporate_bonds" class="mw-redirect" title="Corporate bonds">corporate bonds</a>, <a href="/wiki/Treasury_bond" class="mw-redirect" title="Treasury bond">treasury bonds</a>, or <a href="/wiki/Money_market_funds" class="mw-redirect" title="Money market funds">money market funds</a>) will realise more predictable returns if there is prudent market regulation.</figcaption></figure> <p>To give people shares initially there is formally a two step process. First, under <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> section 558, shares must be "allotted", or created in favour of a particular person. Second, shares are "issued" by being "transferred" to a person. In practice, because shares are not usually 'bearer shares' (i.e. the share is a physical piece of paper), the "transfer" simply means that the person's name is entered on the register of members.<sup id="cite_ref-198" class="reference"><a href="#cite_note-198"><span class="cite-bracket">[</span>198<span class="cite-bracket">]</span></a></sup> Under <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> sections 768 and 769, a certificate that evidences the share issue should be given by the company within two months. In a typical company constitution, directors are entitled to issue shares as part of their general management rights,<sup id="cite_ref-199" class="reference"><a href="#cite_note-199"><span class="cite-bracket">[</span>199<span class="cite-bracket">]</span></a></sup> although they have no power to do so outside the constitution. An authorisation must state the maximum number of allottable shares and the authority can only last for five years.<sup id="cite_ref-200" class="reference"><a href="#cite_note-200"><span class="cite-bracket">[</span>200<span class="cite-bracket">]</span></a></sup> </p><p>The main reason to control directors' power over share allotments and issues is to prevent shareholders' rights being watered down if new shares are created. Under <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> section 561, existing shareholders have a basic <a href="/wiki/Pre-emption_right" title="Pre-emption right">pre-emption right</a>, to be offered any new shares first in proportion to their existing holding. Shareholders have 14 days to decide whether to buy.<sup id="cite_ref-201" class="reference"><a href="#cite_note-201"><span class="cite-bracket">[</span>201<span class="cite-bracket">]</span></a></sup> There are a series of exceptions under <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> sections 564–567, for issuing bonus shares, partly paid shares, and employee shares, while private companies can opt out of pre-emption rules altogether. Furthermore, by special resolution (a three-quarter majority vote) under <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> sections 570–571, shareholders may disapply pre-emption rights. In practice, large companies frequently give directors ad hoc authority to disapply pre-emption rights, but within the scope of a 'Statement of Principles' issued by asset managers. At present, the most influential guide is the document by the Institutional investors' Pre-emption Group, <i>Disapplying Pre-emption Rights: A Statement of Principle</i> (<a rel="nofollow" class="external text" href="http://www.pre-emptiongroup.org.uk/documents/pdf/DisapplyingPre-EmptionRightsStatementofPrinciples.pdf">2008</a>). This suggests that the general practice is to disapply the pre-emption rights on a rolling basis for routine share issues (e.g. shares subject to a clawback) at no more than 5% of share capital each year.<sup id="cite_ref-202" class="reference"><a href="#cite_note-202"><span class="cite-bracket">[</span>202<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Market_regulation">Market regulation</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=18" title="Edit section: Market regulation"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main articles: <a href="/wiki/Prospectus_(finance)" title="Prospectus (finance)">Prospectus (finance)</a>, <a href="/wiki/Market_abuse" title="Market abuse">Market abuse</a>, and <a href="/wiki/Insider_trading" title="Insider trading">Insider trading</a></div> <dl><dt>Prospectuses</dt></dl> <ul><li><a href="/w/index.php?title=Listing_Directive&action=edit&redlink=1" class="new" title="Listing Directive (page does not exist)">Listing Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32001L0034:EN:NOT">2001/34/EC</a> arts 42 – 51</li> <li><a href="/wiki/Financial_Services_and_Markets_Act_2000" title="Financial Services and Markets Act 2000">Financial Services and Markets Act 2000</a> ss 74-8</li> <li><i><a href="/w/index.php?title=R_v_International_Stock_Exchange,_ex_parte_Else&action=edit&redlink=1" class="new" title="R v International Stock Exchange, ex parte Else (page does not exist)">R v International Stock Exchange, ex parte Else</a></i> [1993] QB 534</li> <li><a href="/w/index.php?title=Prospectus_Directive&action=edit&redlink=1" class="new" title="Prospectus Directive (page does not exist)">Prospectus Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32003L0071:EN:NOT">2003/71/EC</a>, amending the Listing Directive</li> <li><a href="/wiki/Transparency_for_Listed_Companies_Directive" class="mw-redirect" title="Transparency for Listed Companies Directive">Transparency for Listed Companies Directive</a> 2004/109/EC</li> <li><a href="/wiki/Financial_Services_and_Markets_Act_2000" title="Financial Services and Markets Act 2000">Financial Services and Markets Act 2000</a> Part VI</li> <li><i><a href="/wiki/Derry_v_Peek" title="Derry v Peek">Derry v Peek</a></i> (1889) L R 14 App Cas 337</li></ul> <dl><dt>Insider dealing</dt></dl> <ul><li><a href="/wiki/Criminal_Justice_Act_1993" title="Criminal Justice Act 1993">Criminal Justice Act 1993</a> ss 52-64 crime of insider trading<sup id="cite_ref-203" class="reference"><a href="#cite_note-203"><span class="cite-bracket">[</span>203<span class="cite-bracket">]</span></a></sup></li> <li><a href="/wiki/Financial_Services_and_Markets_Act_2000" title="Financial Services and Markets Act 2000">Financial Services and Markets Act 2000</a> s 397 (criminal provision on misleading information) s 118 (civil wrong of market abuse, no false or misleading information for participants in secondary trading markets), s 119 (FSA Code of Market Conduct), s 120 (legitimate circulation of price sensitive information, e.g. compliance with listing and takeover rules)</li> <li>Directive <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32003L0006:EN:NOT">2003/6/EC</a> on insider dealing and <a href="/wiki/Market_manipulation" title="Market manipulation">market manipulation</a> (market abuse) and its implementing Directive <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32003L0124:EN:NOT">2003/124/EC</a> on the definition and public disclosure of inside information and the definition of market abuse</li> <li><i><a href="/w/index.php?title=Re_an_Inquiry_under_the_Company_Securities_(Insider_Dealing)_Act_1985&action=edit&redlink=1" class="new" title="Re an Inquiry under the Company Securities (Insider Dealing) Act 1985 (page does not exist)">Re an Inquiry under the Company Securities (Insider Dealing) Act 1985</a></i> [1988] 1 AC 660</li> <li><i><a href="/w/index.php?title=Rigby_and_Bailey_v_R&action=edit&redlink=1" class="new" title="Rigby and Bailey v R (page does not exist)">Rigby and Bailey v R</a></i> [2006] 1 WLR 306</li></ul> <div class="mw-heading mw-heading3"><h3 id="Accounts_and_auditing">Accounts and auditing</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=19" title="Edit section: Accounts and auditing"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/Enron" title="Enron">Enron</a> and <a href="/wiki/Sarbanes%E2%80%93Oxley_Act_of_2002" class="mw-redirect" title="Sarbanes–Oxley Act of 2002">Sarbanes–Oxley Act of 2002</a></li> <li><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 495–497, true and fair view of company in accounts.</li> <li><a href="/wiki/UK_Corporate_Governance_Code" title="UK Corporate Governance Code">UK Corporate Governance Code</a>, audit committees</li> <li><a href="/wiki/Generally_Accepted_Accounting_Practice_(UK)" title="Generally Accepted Accounting Practice (UK)">Generally Accepted Accounting Practice (UK)</a></li> <li><a href="/wiki/Chartered_Institute_of_Management_Accountants" title="Chartered Institute of Management Accountants">Chartered Institute of Management Accountants</a></li> <li><a href="/wiki/British_qualified_accountants" title="British qualified accountants">British qualified accountants</a></li> <li><a href="/wiki/Deloitte" title="Deloitte">Deloitte</a>, <a href="/wiki/Ernst_%26_Young" title="Ernst & Young">Ernst & Young</a>, <a href="/wiki/KPMG" title="KPMG">KPMG</a> and <a href="/wiki/PwC" title="PwC">PwC</a></li> <li>Directive 84/253/EEC, art 24</li> <li><a href="/wiki/International_Accounting_Standards_Board" title="International Accounting Standards Board">International Accounting Standards Board</a></li> <li><a href="/wiki/Auditing_Practices_Board" class="mw-redirect" title="Auditing Practices Board">Auditing Practices Board</a></li> <li><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 532–536, auditor liability</li> <li><i><a href="/w/index.php?title=Re_Kingston_Cotton_Mill_Co_(No_2)&action=edit&redlink=1" class="new" title="Re Kingston Cotton Mill Co (No 2) (page does not exist)">Re Kingston Cotton Mill Co (No 2)</a></i> [1896] 2 Ch 279</li> <li><i><a href="/wiki/Candler_v_Crane,_Christmas_%26_Co" title="Candler v Crane, Christmas & Co">Candler v Crane, Christmas & Co</a></i> [1951] 2 KB 164</li> <li><i><a href="/w/index.php?title=Formento_(Stirling_Area)_Ltd_v_Selsdon_Fountain_Pen_Co_Ltd&action=edit&redlink=1" class="new" title="Formento (Stirling Area) Ltd v Selsdon Fountain Pen Co Ltd (page does not exist)">Formento (Stirling Area) Ltd v Selsdon Fountain Pen Co Ltd</a></i> [1958] 1 WLR 45, Denning LJ</li> <li><i><a href="/wiki/Caparo_Industries_plc_v_Dickman" title="Caparo Industries plc v Dickman">Caparo Industries plc v Dickman</a></i> [1990] 2 AC 605</li> <li><i><a href="/w/index.php?title=Morgan_Crucible_Co_v_Hill_Samuel_Bank_Ltd&action=edit&redlink=1" class="new" title="Morgan Crucible Co v Hill Samuel Bank Ltd (page does not exist)">Morgan Crucible Co v Hill Samuel Bank Ltd</a></i> [1991] 1 Ch. 259</li> <li><i><a href="/w/index.php?title=Galoo_Ltd_v_Bright_Grahame_Murray&action=edit&redlink=1" class="new" title="Galoo Ltd v Bright Grahame Murray (page does not exist)">Galoo Ltd v Bright Grahame Murray</a></i> [1994] 1 WLR 1360</li> <li><i><a href="/wiki/South_Australia_Asset_Management_Co_v_York_Montague" class="mw-redirect" title="South Australia Asset Management Co v York Montague">South Australia Asset Management Co v York Montague</a></i> [1997] AC 191</li></ul> <div class="mw-heading mw-heading3"><h3 id="Mergers_and_acquisitions">Mergers and acquisitions</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=20" title="Edit section: Mergers and acquisitions"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Takeover_regulation_sources" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_takeovers" title="Template:Clist takeovers"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_takeovers" title="Template talk:Clist takeovers"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_takeovers" title="Special:EditPage/Template:Clist takeovers"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Takeover_regulation_sources" style="font-size:114%;margin:0 4em">Takeover regulation sources</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Hogg_v_Cramphorn_Ltd" title="Hogg v Cramphorn Ltd">Hogg v Cramphorn Ltd</a></i> [1967] Ch 254</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Howard_Smith_Ltd_v_Ampol_Petroleum_Ltd" title="Howard Smith Ltd v Ampol Petroleum Ltd">Howard Smith Ltd v Ampol Petroleum Ltd</a></i> [1974] AC 821</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Imperial_Pension_Ltd_v_Imperial_Tobacco_Ltd" class="mw-redirect" title="Imperial Pension Ltd v Imperial Tobacco Ltd"><span class="wrap">Imperial Pension Ltd v Imperial Tobacco Ltd</span></a></i> [1991] 1 WLR 589</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Criterion_Properties_plc_v_Stratford_LLC" class="mw-redirect" title="Criterion Properties plc v Stratford LLC"><span class="wrap">Criterion Properties plc v Stratford LLC</span></a></i> [2004] UKHL 28</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Takeover_Code" class="mw-redirect" title="Takeover Code">Takeover Code</a> <a rel="nofollow" class="external text" href="http://www.thetakeoverpanel.org.uk/wp-content/uploads/2008/11/code.pdf">rule 21</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Takeover_Directive" title="Takeover Directive">Takeover Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0025:EN:NOT">2004/25/EC</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Employment_Rights_Act_1996" title="Employment Rights Act 1996">Employment Rights Act 1996</a> ss 86, 94 and 135</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/TUPER_2006" class="mw-redirect" title="TUPER 2006">TUPER 2006</a> (<a rel="nofollow" class="external text" href="http://www.opsi.gov.uk/si/si2006/20060246.htm">SI 2006/246</a>)</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> s 168</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 942-965</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/R_(Datafin_plc)_v_Takeover_Panel" class="mw-redirect" title="R (Datafin plc) v Takeover Panel">R (Datafin plc) v Takeover Panel</a></i> [1987] QB 815</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Takeover_Code" class="mw-redirect" title="Takeover Code">Takeover Code</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 974-991</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=Re_Grierson_Oldham_and_Adams_Ltd&action=edit&redlink=1" class="new" title="Re Grierson Oldham and Adams Ltd (page does not exist)">Re Grierson Oldham and Adams Ltd</a></i> [1968] Ch 17</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/w/index.php?title=Re_Bugle_Press_Ltd&action=edit&redlink=1" class="new" title="Re Bugle Press Ltd (page does not exist)">Re Bugle Press Ltd</a></i> [1961] Ch 270</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a> ss 110-111</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Companies_Act_2006" title="Companies Act 2006">Companies Act 2006</a> ss 895-941</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/w/index.php?title=Public_Company_Mergers_Directive&action=edit&redlink=1" class="new" title="Public Company Mergers Directive (page does not exist)">Public Company Mergers Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:110:0001:0011:EN:PDF">2011/35/EU</a></div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/wiki/UK_company_law" class="mw-redirect" title="UK company law">UK company law</a> and <a href="/wiki/Mergers_and_acquisitions_in_United_Kingdom_law" title="Mergers and acquisitions in United Kingdom law">takeovers</a></div></td></tr></tbody></table></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Mergers_and_acquisitions_in_United_Kingdom_law" title="Mergers and acquisitions in United Kingdom law">Mergers and acquisitions in United Kingdom law</a></div> <p>The <a href="/wiki/Market_for_corporate_control" title="Market for corporate control">market for corporate control</a>, where parties compete to buy controlling stakes in companies, is seen by some as an important, although perhaps limited, mechanism for the <a href="/wiki/Board_of_directors" title="Board of directors">board of directors</a>' accountability. Because individual shareholders may not be as likely to <a href="/wiki/Act_collectively" class="mw-redirect" title="Act collectively">act collectively</a> as a majority shareholder, the threat of a takeover when a company share price drops, heightens the prospect that a director is removed from office by an ordinary resolution under <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> section 168. Since 1959 the UK has taken the approach that directors, particularly of public companies, should do nothing with the effect of frustrating a takeover bid, unless shareholders approve it by a majority at the time of the takeover. Rule 21 of the <a href="/wiki/City_Code_on_Takeovers_and_Mergers" class="mw-redirect" title="City Code on Takeovers and Mergers">City Code on Takeovers and Mergers</a> consolidates this now.<sup id="cite_ref-204" class="reference"><a href="#cite_note-204"><span class="cite-bracket">[</span>204<span class="cite-bracket">]</span></a></sup> Typical takeover defence tactics, routinely found in <a href="/wiki/US_corporate_law" class="mw-redirect" title="US corporate law">US corporate law</a>, led by <a href="/wiki/Delaware" title="Delaware">Delaware</a>, include issuing extra shares to everyone but a takeover bidder to dilute their stake unless the bidder has the board's consent to buy shareholders' shares (a "<a href="/wiki/Shareholder_rights_plan" title="Shareholder rights plan">poison pill</a>"), paying a takeover bidder to go away ("<a href="/wiki/Greenmail" title="Greenmail">greenmail</a>"), merely selling a key company asset to a friendly third party, or engaging in large share buyback schemes. In the US, defensive tactics must merely be employed in <a href="/wiki/Good_faith" title="Good faith">good faith</a>, and be proportionate to the threat posed with regard to factors like the offer price, timing and effect on the company's stakeholders.<sup id="cite_ref-205" class="reference"><a href="#cite_note-205"><span class="cite-bracket">[</span>205<span class="cite-bracket">]</span></a></sup> Moreover, Delaware directors can often only be removed for a "good reason" (fought out in court) with a <a href="/wiki/Board_classified" class="mw-redirect" title="Board classified">board classified</a> into directors a third of whom will be removable in any given year.<sup id="cite_ref-206" class="reference"><a href="#cite_note-206"><span class="cite-bracket">[</span>206<span class="cite-bracket">]</span></a></sup> This makes <a href="/wiki/Hostile_takeovers" class="mw-redirect" title="Hostile takeovers">hostile takeovers</a> very difficult, unless a bidder promises the incumbent board large <a href="/wiki/Golden_parachute" title="Golden parachute">golden parachutes</a> in return for their consent. After much debate, the <a href="/wiki/European_Union" title="European Union">EU</a>'s newly implemented <a href="/wiki/Takeover_Directive" title="Takeover Directive">Takeover Directive</a> decided to leave member states the option under articles 9 and 12 of whether to mandate that boards remain "neutral".<sup id="cite_ref-207" class="reference"><a href="#cite_note-207"><span class="cite-bracket">[</span>207<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Cadbury_World_sign,_Bournville.JPG" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/6/6f/Cadbury_World_sign%2C_Bournville.JPG/220px-Cadbury_World_sign%2C_Bournville.JPG" decoding="async" width="220" height="165" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/6/6f/Cadbury_World_sign%2C_Bournville.JPG/330px-Cadbury_World_sign%2C_Bournville.JPG 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/6/6f/Cadbury_World_sign%2C_Bournville.JPG/440px-Cadbury_World_sign%2C_Bournville.JPG 2x" data-file-width="3648" data-file-height="2736" /></a><figcaption>UK directors, like those at <a href="/wiki/Cadbury" title="Cadbury">Cadbury</a> facing the takeover from <a href="/wiki/Kraft_Foods" title="Kraft Foods">Kraft</a>,<sup id="cite_ref-208" class="reference"><a href="#cite_note-208"><span class="cite-bracket">[</span>208<span class="cite-bracket">]</span></a></sup> are unable to use corporate powers to block takeover bids and enrich themselves, but this potentially leaves employees vulnerable to job cuts, or reductions in environmental or ethical standards.</figcaption></figure> <p>Even with the UK's non-frustration principle directors always still have the option to persuade their shareholders through informed and reasoned argument that the share price offer is too low, or that the bidder may have ulterior motives that are bad for the company's employees, or for its ethical image. Under common law and the <a href="/wiki/Takeover_Code" class="mw-redirect" title="Takeover Code">Takeover Code</a>, directors must give out information to shareholders relevant to the bid,<sup id="cite_ref-209" class="reference"><a href="#cite_note-209"><span class="cite-bracket">[</span>209<span class="cite-bracket">]</span></a></sup> but not merely recommend the highest offer.<sup id="cite_ref-210" class="reference"><a href="#cite_note-210"><span class="cite-bracket">[</span>210<span class="cite-bracket">]</span></a></sup> The overriding common law rule, however, is to avoid any possibility of a <a href="/wiki/Conflict_of_interest" title="Conflict of interest">conflict of interest</a>, which precludes using management powers for the purpose of frustrating takeovers. In <i><a href="/wiki/Hogg_v_Cramphorn_Ltd" title="Hogg v Cramphorn Ltd">Hogg v Cramphorn Ltd</a></i><sup id="cite_ref-211" class="reference"><a href="#cite_note-211"><span class="cite-bracket">[</span>211<span class="cite-bracket">]</span></a></sup> the director, purportedly concerned that a takeover bidder would make many workers redundant, issued a block of company shares to a trust, thus ensuring the bidder would remain outvoted. Buckley J held the power to issue shares creates <a href="/wiki/Fiduciary" title="Fiduciary">fiduciary</a> duty to only do so for the purpose of raising capital. Directors cannot plead they acted in good faith if a court determines their interests may possibly conflict.<sup id="cite_ref-212" class="reference"><a href="#cite_note-212"><span class="cite-bracket">[</span>212<span class="cite-bracket">]</span></a></sup> The result is that even though directors may wish to protect employees and stakeholders from ominous bidders, the law responds in other ways. UK workers have a minimal measure of job security, with very limited rights to be consulted, and no formal rights outside <a href="/wiki/Collective_bargaining" title="Collective bargaining">collective bargaining</a> to participate in elections for the board or codetermine dismissal issues in <a href="/wiki/Works_councils" class="mw-redirect" title="Works councils">works councils</a>. Employees do have rights before dismissal or redundancies to reasonable notice, dismissal only for a fair reason, and a redundancy payment, under the <a href="/wiki/Employment_Rights_Act_1996" title="Employment Rights Act 1996">Employment Rights Act 1996</a>.<sup id="cite_ref-213" class="reference"><a href="#cite_note-213"><span class="cite-bracket">[</span>213<span class="cite-bracket">]</span></a></sup> Moreover, any changes to workers terms and conditions, or redundancies, following a restructuring through an asset (as opposed to share) sale triggers protection of the <a href="/wiki/Transfer_of_Undertakings_(Protection_of_Employment)_Regulations_2006" title="Transfer of Undertakings (Protection of Employment) Regulations 2006">Transfer of Undertakings (Protection of Employment) Regulations 2006</a><sup id="cite_ref-214" class="reference"><a href="#cite_note-214"><span class="cite-bracket">[</span>214<span class="cite-bracket">]</span></a></sup> meaning good economic, technical or organisational reasons must be given. </p> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Paternoster_Square_2.JPG" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/c/c1/Paternoster_Square_2.JPG/220px-Paternoster_Square_2.JPG" decoding="async" width="220" height="147" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/c/c1/Paternoster_Square_2.JPG/330px-Paternoster_Square_2.JPG 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/c/c1/Paternoster_Square_2.JPG/440px-Paternoster_Square_2.JPG 2x" data-file-width="1200" data-file-height="800" /></a><figcaption>The <a href="/wiki/Takeover_Panel" class="mw-redirect" title="Takeover Panel">Takeover Panel</a>'s <a rel="nofollow" class="external text" href="http://www.thetakeoverpanel.org.uk/wp-content/uploads/2008/11/code.pdf">Code</a>, an example of principles based <a href="/wiki/Self-regulatory_organization" title="Self-regulatory organization">self-regulation</a>, requires equal treatment and good information for shareholders, including consideration of the effects on employees.</figcaption></figure> <p>Beyond rules restricting takeover defences, a series of rules are in place to partly protect, and partly impose obligations on minority shareholders. Under <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> section 979 when a takeover bidder has already acquired 90 per cent of a company's shares it can "squeeze out" or compulsorily purchase the minority's shares at the same price per share as paid for the rest of the takeover. Only if a court determines that price is "manifestly unfair" (and market prices are presumed fair) can the shareholder object,<sup id="cite_ref-215" class="reference"><a href="#cite_note-215"><span class="cite-bracket">[</span>215<span class="cite-bracket">]</span></a></sup> or if the whole arrangement is merely a trick for incumbent shareholders to expropriate a minority they find undesirable,<sup id="cite_ref-216" class="reference"><a href="#cite_note-216"><span class="cite-bracket">[</span>216<span class="cite-bracket">]</span></a></sup> or it can be shown that shareholders had been given insufficient information to properly evaluate the offer.<sup id="cite_ref-217" class="reference"><a href="#cite_note-217"><span class="cite-bracket">[</span>217<span class="cite-bracket">]</span></a></sup> Conversely section 983 allows minority shareholders to require that their stakes are bought out. Further standards apply to listed companies under the <a href="/wiki/Takeover_Code" class="mw-redirect" title="Takeover Code">Takeover Code</a>. The Code contains six principles for takeover bids. Shareholders in the same class should be equally treated, there must be time for them to adequate information including consequences for employees, the board must act in the company's whole interests not their own, false markets and share prices should not artificially fluctuate, bids should only be announced when bidders can follow through with money, and a bid should not distract the business longer than reasonable. Following on from these principles are 38 rules, designed to flesh out in legal terms the "common sense" standards embodied in the 6 principles. The <a href="/wiki/Takeover_Panel" class="mw-redirect" title="Takeover Panel">Takeover Panel</a> administers the Code, and enforces it. Originally established in 1968 as a private club that <a href="/wiki/Self-regulatory_organization" title="Self-regulatory organization">self-regulated</a> its members' practices, was held in <i><a href="/wiki/R_(Datafin_plc)_v_Takeover_Panel" class="mw-redirect" title="R (Datafin plc) v Takeover Panel">R (Datafin plc) v Takeover Panel</a></i><sup id="cite_ref-218" class="reference"><a href="#cite_note-218"><span class="cite-bracket">[</span>218<span class="cite-bracket">]</span></a></sup> to be subject to <a href="/wiki/Judicial_review" title="Judicial review">judicial review</a> of its actions where decisions are found to be manifestly unfair. Despite a handful of challenges, this has not happened.<sup id="cite_ref-219" class="reference"><a href="#cite_note-219"><span class="cite-bracket">[</span>219<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Corporate_insolvency">Corporate insolvency</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=21" title="Edit section: Corporate insolvency"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/UK_insolvency_law" class="mw-redirect" title="UK insolvency law">UK insolvency law</a></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Insolvency_procedure_cases" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_insolvency_process" title="Template:Clist insolvency process"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_insolvency_process" title="Template talk:Clist insolvency process"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_insolvency_process" title="Special:EditPage/Template:Clist insolvency process"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Insolvency_procedure_cases" style="font-size:114%;margin:0 4em">Insolvency procedure cases</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a> Sch B1</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Harris_Simons_Construction_Ltd" title="Re Harris Simons Construction Ltd">Re Harris Simons Construction Ltd</a></i> [1989] 1 WLR 368</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Charnley_Davies_Ltd_(No_2)" title="Re Charnley Davies Ltd (No 2)">Re Charnley Davies Ltd (No 2)</a></i> [1990] BCLC 760</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Oldham_v_Kyrris" title="Oldham v Kyrris">Oldham v Kyrris</a></i> [2003] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/2003/1506.html">EWCA Civ 1506</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Atlantic_Computer_Systems_(No_1)" class="mw-redirect" title="Re Atlantic Computer Systems (No 1)">Re Atlantic Computer Systems (No 1)</a></i> [1990] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/1990/20.html">EWCA Civ 20</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Powdrill_v_Watson" title="Powdrill v Watson">Powdrill v Watson</a></i> [1995] 2 AC 394</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Downsview_Ltd_v_First_City_Corporation_Ltd" class="mw-redirect" title="Downsview Ltd v First City Corporation Ltd"><span class="wrap">Downsview Ltd v First City Corporation Ltd</span></a></i> [1992] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKPC/1992/1992_34.html">UKPC 34</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Medforth_v_Blake" title="Medforth v Blake">Medforth v Blake</a></i> [1999] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/1999/1482.html">EWCA Civ 1482</a></div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Peveril_Gold_Mines_Ltd" title="Re Peveril Gold Mines Ltd">Re Peveril Gold Mines Ltd</a></i> [1898] 1 Ch 122</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Rica_Gold_Washing_Co" title="Re Rica Gold Washing Co">Re Rica Gold Washing Co</a></i> (1879) 11 Ch D 36</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Stonegate_Securities_Ltd_v_Gregory" title="Stonegate Securities Ltd v Gregory">Stonegate Securities Ltd v Gregory</a></i> [1980] Ch 576</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Re_Kayley_Vending_Ltd" title="Re Kayley Vending Ltd">Re Kayley Vending Ltd</a></i> [2009] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWHC/Ch/2009/904.html">EWHC 904 (Ch)</a></div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>see <a href="/wiki/UK_insolvency_law" class="mw-redirect" title="UK insolvency law">UK insolvency law</a></div></td></tr></tbody></table></div> <ul><li>K Cork, <i><a href="/wiki/Insolvency_Law_and_Practice,_Report_of_the_Review_Committee" class="mw-redirect" title="Insolvency Law and Practice, Report of the Review Committee">Insolvency Law and Practice, Report of the Review Committee</a></i> (1982) Cmnd 8558</li> <li>Priority on insolvency</li> <li>Insolvency procedures</li> <li>Voidable transactions</li> <li>Directors' disqualifications and unlawful trading</li> <li><a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a> ss 213-215</li> <li><a href="/wiki/Company_Directors_Disqualification_Act_1986" title="Company Directors Disqualification Act 1986">Company Directors Disqualification Act 1986</a> ss 6-7</li> <li><i><a href="/wiki/Colin_Gwyer_Associates_Ltd_v_London_Wharf_(Limehouse)_Ltd" class="mw-redirect" title="Colin Gwyer Associates Ltd v London Wharf (Limehouse) Ltd">Colin Gwyer Associates Ltd v London Wharf (Limehouse) Ltd</a></i></li> <li><i><a href="/wiki/Adams_v_Cape_Industries" class="mw-redirect" title="Adams v Cape Industries">Adams v Cape Industries</a></i> [1990] Ch 433</li> <li><i><a href="/wiki/Re_Hydrodam_(Corby)_Ltd" class="mw-redirect" title="Re Hydrodam (Corby) Ltd">Re Hydrodam (Corby) Ltd</a></i> [1994] 2 BCLC 180</li></ul> <div class="mw-heading mw-heading2"><h2 id="Corporation_tax">Corporation tax</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=22" title="Edit section: Corporation tax"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main articles: <a href="/wiki/UK_corporation_tax" class="mw-redirect" title="UK corporation tax">UK corporation tax</a> and <a href="/wiki/Taxation_in_the_United_Kingdom" title="Taxation in the United Kingdom">Taxation in the United Kingdom</a></div> <ul><li><a href="/wiki/Income_and_Corporation_Taxes_Act_1988" title="Income and Corporation Taxes Act 1988">Income and Corporation Taxes Act 1988</a></li> <li><a href="/wiki/Corporation_Tax_Act_2009" title="Corporation Tax Act 2009">Corporation Tax Act 2009</a></li> <li><a href="/wiki/Corporation_Tax_Act_2010" title="Corporation Tax Act 2010">Corporation Tax Act 2010</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="Corporate_law_internationally">Corporate law internationally</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=23" title="Edit section: Corporate law internationally"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Corporate_law" title="Corporate law">Corporate law</a></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Freedom_of_establishment_cases" style="width: 350px; text-align: center; font-size: 80%; line-height: 1.5em; background-color: #fafafa; float: right; clear: right; margin: 0 0 1em 1em;;padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Clist_establishment" title="Template:Clist establishment"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Clist_establishment" title="Template talk:Clist establishment"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Clist_establishment" title="Special:EditPage/Template:Clist establishment"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Freedom_of_establishment_cases" style="font-size:114%;margin:0 4em">Freedom of establishment cases</div></th></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/TFEU" class="mw-redirect" title="TFEU">TFEU</a> arts 49-55</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/R_(Daily_Mail_and_General_Trust_plc)_v_Treasury" class="mw-redirect" title="R (Daily Mail and General Trust plc) v Treasury"><span class="wrap">R (Daily Mail and General Trust plc) v Treasury</span></a></i> (1988) Case 81/87</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Gebhard_v_Avvocati_e_Procuratori_di_Milano" class="mw-redirect" title="Gebhard v Avvocati e Procuratori di Milano"><span class="wrap">Gebhard v Avvocati e Procuratori di Milano</span></a></i> (1995) C-55/94</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Centros_Ltd_v_Erhvervs-_og_Selskabsstyrelsen" title="Centros Ltd v Erhvervs- og Selskabsstyrelsen"><span class="wrap">Centros Ltd v Erhvervs- og Selskabsstyrelsen</span></a></i> (1999) C-212/97</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/%C3%9Cberseering_BV_v_Nordic_Construction_GmbH" class="mw-redirect" title="Überseering BV v Nordic Construction GmbH"><span class="wrap">Überseering BV v Nordic Construction GmbH</span></a></i> (2002) C-208/00</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Kamer_van_Koophandel_v_Inspire_Art_Ltd" class="mw-redirect" title="Kamer van Koophandel v Inspire Art Ltd">Kamer van Koophandel v Inspire Art Ltd</a></i> (2003) C-167/01</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Cartesio_Oktat%C3%B3_%C3%A9s_Szolg%C3%A1ltat%C3%B3_bt" title="Cartesio Oktató és Szolgáltató bt">Cartesio Oktató és Szolgáltató bt</a></i> (2008) C-210/06</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Commission_v_Germany_(2007)" class="mw-redirect" title="Commission v Germany (2007)">Commission v Germany</a></i> (2007) C-112/2005</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/The_Rosella" class="mw-redirect" title="The Rosella">The Rosella</a></i> or <i><a href="/wiki/ITWF_v_Viking_Line_ABP" class="mw-redirect" title="ITWF v Viking Line ABP">ITWF v Viking Line ABP</a></i> (2007) C-438/05</div></td></tr><tr><td colspan="2" class="navbox-list navbox-off" style="width:100%;padding:0"><div style="padding:0 0.25em"><i><a href="/wiki/Demir_and_Baykara_v_Turkey" class="mw-redirect" title="Demir and Baykara v Turkey">Demir and Baykara v Turkey</a></i> [2008] ECHR 1345</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>See <b><a href="/wiki/EU_law" class="mw-redirect" title="EU law">EU law</a></b></div></td></tr></tbody></table></div> <figure class="mw-default-size mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Marshall_Plan_poster.JPG" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/b/b3/Marshall_Plan_poster.JPG/220px-Marshall_Plan_poster.JPG" decoding="async" width="220" height="301" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/b/b3/Marshall_Plan_poster.JPG/330px-Marshall_Plan_poster.JPG 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/b/b3/Marshall_Plan_poster.JPG/440px-Marshall_Plan_poster.JPG 2x" data-file-width="714" data-file-height="976" /></a><figcaption>One of a number of posters created by the <a href="/wiki/Economic_Cooperation_Administration" title="Economic Cooperation Administration">Economic Cooperation Administration</a> to promote the <a href="/wiki/Marshall_Plan" title="Marshall Plan">Marshall Plan</a> in Europe</figcaption></figure> <ul><li><a href="/wiki/Regulatory_competition" title="Regulatory competition">Regulatory competition</a></li> <li><a href="/wiki/European_company_law" title="European company law">European company law</a></li> <li><i><a href="/wiki/Centros_Ltd_v_Erhvervs-og_Selskabsstryrelsen" class="mw-redirect" title="Centros Ltd v Erhvervs-og Selskabsstryrelsen">Centros Ltd v Erhvervs-og Selskabsstryrelsen</a></i> [1999] 2 CMLR 551 (C-212/97)</li> <li><i><a href="/wiki/Kamer_van_Koophandel_en_Fabrieken_voor_Amsterdam_v_Inspire_Art_Ltd" title="Kamer van Koophandel en Fabrieken voor Amsterdam v Inspire Art Ltd">Kamer van Koophandel en Fabrieken voor Amsterdam v Inspire Art Ltd</a></i> [2003] ECR I-10155 (C-167/01)</li> <li><a href="/wiki/US_corporate_law" class="mw-redirect" title="US corporate law">US corporate law</a></li> <li><i><a href="/wiki/Liggett_v_Lee" class="mw-redirect" title="Liggett v Lee">Liggett v Lee</a></i></li> <li><a href="/wiki/Delaware_General_Corporation_Law" title="Delaware General Corporation Law">Delaware General Corporation Law</a><i></i></li> <li><i><a href="/wiki/Berkey_v_Third_Avenue_Railway" class="mw-redirect" title="Berkey v Third Avenue Railway">Berkey v Third Avenue Railway</a></i></li> <li><i><a href="/wiki/Dodge_v._Ford_Motor_Company" class="mw-redirect" title="Dodge v. Ford Motor Company">Dodge v. Ford Motor Company</a></i>, on directors' duties to the corporation and the community</li> <li><i><a href="/wiki/Aronson_v_Lewis" class="mw-redirect" title="Aronson v Lewis">Aronson v Lewis</a></i></li> <li><i><a href="/wiki/Guth_v._Loft_Inc." title="Guth v. Loft Inc.">Guth v. Loft Inc.</a></i> 5 A.2d 503 (Del. 1939)</li> <li><i><a href="/wiki/In_re_Walt_Disney_Derivative_Litigation" class="mw-redirect" title="In re Walt Disney Derivative Litigation">In re Walt Disney Derivative Litigation</a></i></li> <li><i><a href="/wiki/Joy_v_North" class="mw-redirect" title="Joy v North">Joy v North</a></i></li> <li><i><a href="/w/index.php?title=Chef_v_Mathes&action=edit&redlink=1" class="new" title="Chef v Mathes (page does not exist)">Chef v Mathes</a></i></li> <li><a href="/wiki/German_company_law" title="German company law">German company law</a></li> <li><a href="/wiki/World_Trade_Organization" title="World Trade Organization">World Trade Organization</a></li> <li><a href="/wiki/International_trade" title="International trade">International trade</a></li> <li><a href="/wiki/International_economic_law" title="International economic law">International economic law</a></li> <li><a href="/wiki/International_Labour_Organization" title="International Labour Organization">International Labour Organization</a></li> <li><a href="/wiki/Organisation_for_Economic_Co-operation_and_Development" class="mw-redirect" title="Organisation for Economic Co-operation and Development">Organisation for Economic Co-operation and Development</a> and <a href="/wiki/OECD_Guidelines_for_Multinational_Enterprises" class="mw-redirect" title="OECD Guidelines for Multinational Enterprises">OECD Guidelines for Multinational Enterprises</a></li> <li>United Nations <a href="/wiki/Principles_for_Responsible_Investment_(PRI)" class="mw-redirect" title="Principles for Responsible Investment (PRI)">Principles for Responsible Investment (PRI)</a></li> <li><a href="/wiki/Conflicts_of_law" class="mw-redirect" title="Conflicts of law">Conflicts of law</a></li> <li><a href="/wiki/Shipping_law" class="mw-redirect" title="Shipping law">Shipping law</a></li> <li><a href="/w/index.php?title=International_Corporate_Governance_Network&action=edit&redlink=1" class="new" title="International Corporate Governance Network (page does not exist)">International Corporate Governance Network</a>, <a rel="nofollow" class="external text" href="http://www.icgn.org/">www.icgn.org/</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=24" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/FTSE_100" class="mw-redirect" title="FTSE 100">FTSE 100</a></li></ul> <style data-mw-deduplicate="TemplateStyles:r1184024115">.mw-parser-output .div-col{margin-top:0.3em;column-width:30em}.mw-parser-output .div-col-small{font-size:90%}.mw-parser-output .div-col-rules{column-rule:1px solid #aaa}.mw-parser-output .div-col dl,.mw-parser-output .div-col ol,.mw-parser-output .div-col ul{margin-top:0}.mw-parser-output .div-col li,.mw-parser-output .div-col dd{page-break-inside:avoid;break-inside:avoid-column}</style><div class="div-col" style="column-width: 18em;"> <ul><li><a href="/wiki/Corporate_law" title="Corporate law">Corporate law</a></li> <li><a href="/wiki/European_company_law" title="European company law">European company law</a></li> <li><a href="/wiki/German_company_law" title="German company law">German company law</a></li> <li><a href="/wiki/US_corporate_law" class="mw-redirect" title="US corporate law">US corporate law</a></li> <li><a href="/wiki/French_company_law" title="French company law">French company law</a></li> <li><a href="/wiki/UK_public_service_law" class="mw-redirect" title="UK public service law">UK public service law</a></li> <li><a href="/wiki/UK_labour_law" class="mw-redirect" title="UK labour law">UK labour law</a></li> <li><a href="/wiki/UK_banking_law" class="mw-redirect" title="UK banking law">UK banking law</a></li> <li><a href="/wiki/UK_commercial_law" class="mw-redirect" title="UK commercial law">UK commercial law</a></li> <li><a href="/wiki/Corporate_social_responsibility" title="Corporate social responsibility">Corporate social responsibility</a></li> <li><a href="/wiki/Socially_responsible_investing" title="Socially responsible investing">Socially responsible investing</a></li> <li><a href="/wiki/Environmental_Social_and_Corporate_Governance" class="mw-redirect" title="Environmental Social and Corporate Governance">Environmental Social and Corporate Governance</a></li> <li><a href="/wiki/Companies_House" title="Companies House">Companies House</a></li> <li><a href="/wiki/Department_for_Business,_Innovation_and_Skills" title="Department for Business, Innovation and Skills">Department for Business, Innovation and Skills</a></li> <li><a href="/wiki/Board_of_Trade" title="Board of Trade">Board of Trade</a> (or <a href="/wiki/Department_of_Trade_and_Industry_(United_Kingdom)" title="Department of Trade and Industry (United Kingdom)">DTI</a> or <a href="/wiki/DBERR" class="mw-redirect" title="DBERR">DBERR</a>)</li> <li><a href="/wiki/Insolvency_Service" title="Insolvency Service">Insolvency Service</a></li> <li><a href="/wiki/Corporate_tax" title="Corporate tax">Corporate tax</a></li> <li><a href="/wiki/UK_corporation_tax" class="mw-redirect" title="UK corporation tax">UK corporation tax</a></li> <li><a href="/wiki/Corporation_Tax_Act_2010" title="Corporation Tax Act 2010">Corporation Tax Act 2010</a> (<a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2010/4/contents">c 4</a>)</li></ul> </div> <div class="mw-heading mw-heading2"><h2 id="Notes_and_citations">Notes and citations</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=25" title="Edit section: Notes and citations"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist"> <div class="mw-references-wrap mw-references-columns"><ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text">See <a href="/wiki/Joint_Stock_Companies_Act_1856" title="Joint Stock Companies Act 1856">Joint Stock Companies Act 1856</a>. The French <i><a href="/w/index.php?title=Code_de_Commerce&action=edit&redlink=1" class="new" title="Code de Commerce (page does not exist)">Code de Commerce</a></i> of 1807, as part of the <a href="/wiki/Napoleonic_Code" title="Napoleonic Code">Napoleonic Code</a> allowed for public company formation with limited liability after an express governmental concession, and the New York <a href="/w/index.php?title=Act_Relative_to_Incorporations_for_Manufacturing_Purposes&action=edit&redlink=1" class="new" title="Act Relative to Incorporations for Manufacturing Purposes (page does not exist)">Act Relative to Incorporations for Manufacturing Purposes</a> of 1811 allowed for free incorporation with limited liability, but only for manufacturing businesses. So, while necessarily drawing on ideas formulated in France and the US, the UK had the first modern company law.</span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><a href="/wiki/RC_Clark" class="mw-redirect" title="RC Clark">RC Clark</a>, <i>Corporate Law</i> (Aspen 1986) 2, defines the modern <i>public</i> company by these three features (separate legal personality, limited liability, delegated management) and in addition, freely transferable shares.</span> </li> <li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text">A Smith, <i><a href="/wiki/An_Inquiry_into_the_Nature_and_Causes_of_the_Wealth_of_Nations" class="mw-redirect" title="An Inquiry into the Nature and Causes of the Wealth of Nations">An Inquiry into the Nature and Causes of the Wealth of Nations</a></i> (1776) <a rel="nofollow" class="external text" href="http://www.ibiblio.org/ml/libri/s/SmithA_WealthNations_p.pdf">Book V, ch 1, para 107</a></span> </li> <li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text">See J Micklethwait and A Wooldridge, <i>The company: A short history of a revolutionary idea</i> (Modern Library 2003) ch 3</span> </li> <li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text">See the <a href="/wiki/Bubble_Companies,_etc._Act_1825" class="mw-redirect" title="Bubble Companies, etc. Act 1825">Bubble Companies, etc. Act 1825</a>, 6 Geo 4, c 91</span> </li> <li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text">See <a href="/wiki/C_Dickens" class="mw-redirect" title="C Dickens">C Dickens</a>, <i><a href="/wiki/Martin_Chuzzlewit" title="Martin Chuzzlewit">Martin Chuzzlewit</a></i> (1843) <a href="https://en.wikisource.org/wiki/Martin_Chuzzlewit/Chapter_27" class="extiw" title="wikisource:Martin Chuzzlewit/Chapter 27">ch 27</a>, <span style="padding-right:.15em;">"</span>'The secretary's salary, David,' said Mr Montague, 'the office being now established, is eight hundred pounds <a href="/wiki/Per_annum" title="Per annum">per annum</a>, with his house–rent, coals, and <a href="/wiki/Candle" title="Candle">candles</a> free. His five–and–twenty shares he holds, of course. Is that enough?' David smiled and nodded, and coughed behind a little locked <a href="/wiki/Briefcase#Types" title="Briefcase">portfolio</a> which he carried; with an air that proclaimed him to be the <a href="/wiki/Company_secretary" title="Company secretary">secretary</a> in question. 'If that's enough,' said Montague, 'I will propose it at the Board to–day, in my capacity as chairman.' The secretary smiled again; laughed, indeed, this time; and said, rubbing his nose slily with one end of the portfolio: 'It was a capital thought, wasn't it?' 'What was a capital thought, David?' Mr Montague inquired. 'The Anglo–Bengalee,' tittered the secretary. '<a href="/w/index.php?title=The_Anglo%E2%80%93Bengalee_Disinterested_Loan_and_Life_Assurance_Company&action=edit&redlink=1" class="new" title="The Anglo–Bengalee Disinterested Loan and Life Assurance Company (page does not exist)">The Anglo–Bengalee Disinterested Loan and Life Assurance Company</a> is rather a capital concern, I hope, David,' said Montague. 'Capital indeed!' cried the secretary, with another laugh —' in one sense.' 'In the only important one,' observed the chairman; 'which is number one, David.' 'What,' asked the secretary, bursting into another laugh, 'what will be the <a href="/wiki/Minimum_capital" title="Minimum capital">paid up capital</a>, according to the next prospectus?' 'A figure of two, and as many oughts after it as the printer can get into the same line,' replied his friend. 'Ha, ha!' At this they both laughed; the secretary so vehemently, that in kicking up his feet, he kicked the apron open, and nearly started Cauliflower's brother into an oyster shop; not to mention Mr Bailey's receiving such a sudden swing, that he held on for a moment quite a young Fame, by one strap and no legs."</span> </li> <li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text">Report of the Parliamentary Committee on Joint Stock Companies (1844) British Parliamentary Papers vol VII</span> </li> <li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text">e.g. Case C-212/97 <i><a href="/wiki/Centros_Ltd_v_Erhvervs-og_Selskabsstryrelsen" class="mw-redirect" title="Centros Ltd v Erhvervs-og Selskabsstryrelsen">Centros Ltd v Erhvervs-og Selskabsstryrelsen</a></i> [1999] 2 CMLR 551 and Case C-167/01 <i><a href="/wiki/Kamer_van_Koophandel_en_Fabrieken_voor_Amsterdam_v_Inspire_Art_Ltd" title="Kamer van Koophandel en Fabrieken voor Amsterdam v Inspire Art Ltd">Kamer van Koophandel en Fabrieken voor Amsterdam v Inspire Art Ltd</a></i> [2003] ECR I-10155</span> </li> <li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text">CA 2006 s 3(4); under CA 2006 s 448, unlimited companies are exempt from publishing accounts and reports</span> </li> <li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text"><a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a> <a rel="nofollow" class="external text" href="http://www.insolvencyhelpline.co.uk/insolvency-act/p04c1.php#74">s 74(2)(d)</a> 'In the case of a company limited by shares, no contribution is required from any member exceeding the amount (if any) unpaid on the shares in respect of which he is liable as a present or future member.'</span> </li> <li id="cite_note-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-11">^</a></b></span> <span class="reference-text">CA 2006 s 4</span> </li> <li id="cite_note-12"><span class="mw-cite-backlink"><b><a href="#cite_ref-12">^</a></b></span> <span class="reference-text">CA 2006 s 58</span> </li> <li id="cite_note-13"><span class="mw-cite-backlink"><b><a href="#cite_ref-13">^</a></b></span> <span class="reference-text">CA 2006 s 3(4)</span> </li> <li id="cite_note-14"><span class="mw-cite-backlink"><b><a href="#cite_ref-14">^</a></b></span> <span class="reference-text">CA 2006 s 35(2) and the <a href="/wiki/Companies_(Audit,_Investigations_and_Community_Enterprise)_Act_2004" title="Companies (Audit, Investigations and Community Enterprise) Act 2004">Companies (Audit, Investigations and Community Enterprise) Act 2004</a></span> </li> <li id="cite_note-15"><span class="mw-cite-backlink"><b><a href="#cite_ref-15">^</a></b></span> <span class="reference-text">See CA 2006 ss 755 (offering shares to the public), ss 761-763 (minimum capital); for market regulation rules, see the <a href="/wiki/Financial_Services_and_Markets_Act_2000" title="Financial Services and Markets Act 2000">Financial Services and Markets Act 2000</a></span> </li> <li id="cite_note-16"><span class="mw-cite-backlink"><b><a href="#cite_ref-16">^</a></b></span> <span class="reference-text">See <a href="/w/index.php?title=The_European_Public_Limited-Liability_Company_Regulations_2004&action=edit&redlink=1" class="new" title="The European Public Limited-Liability Company Regulations 2004 (page does not exist)">The European Public Limited-Liability Company Regulations 2004</a> <a rel="nofollow" class="external text" href="http://www.opsi.gov.uk/si/si2004/20042326.htm">SI 2326/2004</a> and EU Regulation <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32001R2157:EN:NOT">2157/2001/EC</a></span> </li> <li id="cite_note-17"><span class="mw-cite-backlink"><b><a href="#cite_ref-17">^</a></b></span> <span class="reference-text">EU Directive <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32001L0086:EN:NOT">2001/86/EC</a></span> </li> <li id="cite_note-18"><span class="mw-cite-backlink"><b><a href="#cite_ref-18">^</a></b></span> <span class="reference-text">CA 2006 s 7</span> </li> <li id="cite_note-19"><span class="mw-cite-backlink"><b><a href="#cite_ref-19">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Erlanger_v_New_Sombrero_Phosphate_Co" title="Erlanger v New Sombrero Phosphate Co">Erlanger v New Sombrero Phosphate Co</a></i> (1878) 3 App Cas 1218, reversing <i><a href="/wiki/Clarke_v_Dickson" title="Clarke v Dickson">Clarke v Dickson</a></i> (1858) EB & E 148. On remedies for misrepresentation, <i><a href="/wiki/Derry_v_Peek" title="Derry v Peek">Derry v Peek</a></i> (1889) LR 14 App Cas 337, <i><a href="/wiki/Heilbut,_Symons_%26_Co_v_Buckleton" title="Heilbut, Symons & Co v Buckleton">Heilbut, Symons & Co v Buckleton</a></i> [1913] AC 30 and <i><a href="/wiki/Smith_New_Court_Ltd_v_Scrimgeour_Vickers_(Asset_Management)_Ltd" class="mw-redirect" title="Smith New Court Ltd v Scrimgeour Vickers (Asset Management) Ltd">Smith New Court Ltd v Scrimgeour Vickers (Asset Management) Ltd</a></i> [1997] AC 254. Note however, share tender offers are merely <a href="/wiki/Invitations_to_treat" class="mw-redirect" title="Invitations to treat">invitations to treat</a>, <i><a href="/wiki/Spencer_v_Harding" title="Spencer v Harding">Spencer v Harding</a></i> (1870) LR 5 CP 561.</span> </li> <li id="cite_note-20"><span class="mw-cite-backlink"><b><a href="#cite_ref-20">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Kelner_v_Baxter" title="Kelner v Baxter">Kelner v Baxter</a></i> (1866) LR 2 CP 174; CA 2006 s 51, implementing the <a href="/wiki/Second_Company_Law_Directive" title="Second Company Law Directive">Second Company Law Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31968L0151:EN:HTML">68/151/EEC</a>, replaced by the <a href="/w/index.php?title=Single_Person_Company_Directive&action=edit&redlink=1" class="new" title="Single Person Company Directive (page does not exist)">Single Person Company Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0101:EN:HTML">2009/101/EC</a> and <i><a href="/w/index.php?title=Phonogram_Ltd_v_Lane&action=edit&redlink=1" class="new" title="Phonogram Ltd v Lane (page does not exist)">Phonogram Ltd v Lane</a></i> [1982] 2 QB 938</span> </li> <li id="cite_note-21"><span class="mw-cite-backlink"><b><a href="#cite_ref-21">^</a></b></span> <span class="reference-text">CA 2006 s 13</span> </li> <li id="cite_note-22"><span class="mw-cite-backlink"><b><a href="#cite_ref-22">^</a></b></span> <span class="reference-text">CA 2006 s 20 and the <a href="/wiki/Companies_(Model_Articles)_Regulations_2008" title="Companies (Model Articles) Regulations 2008">Companies (Model Articles) Regulations 2008</a> (<a rel="nofollow" class="external text" href="http://www.opsi.gov.uk/si/si2008/uksi_20083229_en_1">SI 2008/3229</a>)</span> </li> <li id="cite_note-23"><span class="mw-cite-backlink"><b><a href="#cite_ref-23">^</a></b></span> <span class="reference-text">See CA 2006 s 154 (directors), s 12 (secretary) s 7 (member) and <a href="/w/index.php?title=Single_Person_Company_Directive&action=edit&redlink=1" class="new" title="Single Person Company Directive (page does not exist)">Single Person Company Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0102:EN:HTML">2009/102/EC</a></span> </li> <li id="cite_note-24"><span class="mw-cite-backlink"><b><a href="#cite_ref-24">^</a></b></span> <span class="reference-text">See CA 2006 ss 54-69, <a href="/wiki/Business_Names_Act_1985" title="Business Names Act 1985">Business Names Act 1985</a> and <i><a href="/w/index.php?title=Bowman_v_Secular_Society_Ltd&action=edit&redlink=1" class="new" title="Bowman v Secular Society Ltd (page does not exist)">Bowman v Secular Society Ltd</a></i> [1917] AC 406; see also, <i><a href="/wiki/F_Goldsmith_(Sicklesmere)_Ltd_v_Baxter" title="F Goldsmith (Sicklesmere) Ltd v Baxter">F Goldsmith (Sicklesmere) Ltd v Baxter</a></i> [1970] 1 Ch 85, holding that if a company misstates its name in a contract, the contract is not void if a reasonable person would understand the entity referred to.</span> </li> <li id="cite_note-25"><span class="mw-cite-backlink"><b><a href="#cite_ref-25">^</a></b></span> <span class="reference-text">See <a rel="nofollow" class="external text" href="http://www.companieshouse.gov.uk/forms/formsContinuation.shtml#IN01">http://www.companieshouse.gov.uk/forms/formsContinuation.shtml#IN01</a> (last accessed 6 October 2018)</span> </li> <li id="cite_note-26"><span class="mw-cite-backlink"><b><a href="#cite_ref-26">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Case_of_Sutton%27s_Hospital" title="Case of Sutton's Hospital">Case of Sutton's Hospital</a></i> (1612) <a rel="nofollow" class="external text" href="http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=911&chapter=106352&layout=html&Itemid=27#c_lf0462-01_footnote_nt_1101">10 Rep 32</a>; 77 Eng Rep 960, 973</span> </li> <li id="cite_note-27"><span class="mw-cite-backlink"><b><a href="#cite_ref-27">^</a></b></span> <span class="reference-text">For a very old example, see <i><a href="/w/index.php?title=Edmunds_v_Brown_and_Tillard&action=edit&redlink=1" class="new" title="Edmunds v Brown and Tillard (page does not exist)">Edmunds v Brown and Tillard</a></i> (1668) 83 ER 385-387</span> </li> <li id="cite_note-28"><span class="mw-cite-backlink"><b><a href="#cite_ref-28">^</a></b></span> <span class="reference-text">It is highly improbable in practice that companies lifespans are longer than an average person's. Of the 100 largest global companies in 1912, 48 had gone by 1995, see L Hannah, 'Marshall's Trees and the Global Forest: Were Giant Redwoods Different?' in N Lamoreaux et al. (eds), <i>Learning by Doing in Markets, Firms and Countries</i> (1998) 253, 259</span> </li> <li id="cite_note-29"><span class="mw-cite-backlink"><b><a href="#cite_ref-29">^</a></b></span> <span class="reference-text">See <a href="/wiki/Insolvency_Act_1986" title="Insolvency Act 1986">Insolvency Act 1986</a> <a rel="nofollow" class="external text" href="http://www.insolvencyhelpline.co.uk/insolvency-act/p04c1.php#74">s 74(2)(d)</a> in the case of a company limited by shares, no contribution is required from any member exceeding the amount (if any) unpaid on the shares in respect of which he is liable as a present or past member'.</span> </li> <li id="cite_note-30"><span class="mw-cite-backlink"><b><a href="#cite_ref-30">^</a></b></span> <span class="reference-text">See generally, <a href="/wiki/PL_Davies" class="mw-redirect" title="PL Davies">PL Davies</a>, <i>An Introduction to Company Law</i> (Clarendon 2002) ch 4</span> </li> <li id="cite_note-31"><span class="mw-cite-backlink"><b><a href="#cite_ref-31">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Meridian_Global_Funds_Management_Asia_Ltd_v_Securities_Commission" title="Meridian Global Funds Management Asia Ltd v Securities Commission">Meridian Global Funds Management Asia Ltd v Securities Commission</a></i> [1995] 2 AC 500</span> </li> <li id="cite_note-32"><span class="mw-cite-backlink"><b><a href="#cite_ref-32">^</a></b></span> <span class="reference-text">cf <i><a href="/wiki/Stone_%26_Rolls_Ltd_v_Moore_Stephens" class="mw-redirect" title="Stone & Rolls Ltd v Moore Stephens">Stone & Rolls Ltd v Moore Stephens</a></i> [2009] UKHL 39, where a thin majority of the House of Lords held that an illegal act by a shareholder would be attributed to the company even though a liquidator was now standing in the company's shoes and would therefore be barred by <i><a href="/w/index.php?title=Ex_turpi_causa_non-oritur_actio&action=edit&redlink=1" class="new" title="Ex turpi causa non-oritur actio (page does not exist)">ex turpi causa non-oritur actio</a></i>.</span> </li> <li id="cite_note-33"><span class="mw-cite-backlink"><b><a href="#cite_ref-33">^</a></b></span> <span class="reference-text">(1875) LR 7 HL 653</span> </li> <li id="cite_note-34"><span class="mw-cite-backlink"><b><a href="#cite_ref-34">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Cotman_v_Brougham" title="Cotman v Brougham">Cotman v Brougham</a></i> [1918] AC 514 and <i><a href="/w/index.php?title=Bell_Houses_v_City_Wall_Properties&action=edit&redlink=1" class="new" title="Bell Houses v City Wall Properties (page does not exist)">Bell Houses v City Wall Properties</a></i> [1966] 2 QB 656</span> </li> <li id="cite_note-35"><span class="mw-cite-backlink"><b><a href="#cite_ref-35">^</a></b></span> <span class="reference-text">CA 2006 s 31</span> </li> <li id="cite_note-36"><span class="mw-cite-backlink"><b><a href="#cite_ref-36">^</a></b></span> <span class="reference-text">CA 2006 s 39; as a matter of <a href="/wiki/Agency_law" class="mw-redirect" title="Agency law">agency law</a>, however directors may have exceeded their authority. CA 2006 s 40 states third parties will lose protection if they have acted in <a href="/wiki/Bad_faith" title="Bad faith">bad faith</a> with the knowledge that a company exceeded its capacity.</span> </li> <li id="cite_note-37"><span class="mw-cite-backlink"><b><a href="#cite_ref-37">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/Royal_British_Bank_v_Turquand" title="Royal British Bank v Turquand">Royal British Bank v Turquand</a></i> (1856) 119 ER 327, <i><a href="/w/index.php?title=Mahony_v_East_Holyford_Mining_Co&action=edit&redlink=1" class="new" title="Mahony v East Holyford Mining Co (page does not exist)">Mahony v East Holyford Mining Co</a></i> (1875) LR 7 HL 869</span> </li> <li id="cite_note-38"><span class="mw-cite-backlink"><b><a href="#cite_ref-38">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Hely-Hutchinson_v_Brayhead_Ltd" title="Hely-Hutchinson v Brayhead Ltd">Hely-Hutchinson v Brayhead Ltd</a></i> [1968] 1 QB 549</span> </li> <li id="cite_note-39"><span class="mw-cite-backlink"><b><a href="#cite_ref-39">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Freeman_and_Lockyer_v_Buckhurst_Park_Properties_(Mangal)_Ltd" class="mw-redirect" title="Freeman and Lockyer v Buckhurst Park Properties (Mangal) Ltd">Freeman and Lockyer v Buckhurst Park Properties (Mangal) Ltd</a></i> [1964] 2 QB 480</span> </li> <li id="cite_note-40"><span class="mw-cite-backlink"><b><a href="#cite_ref-40">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/Lister_v_Hesley_Hall_Ltd" title="Lister v Hesley Hall Ltd">Lister v Hesley Hall Ltd</a></i> [2001] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKHL/2001/22.html">UKHL 22</a>; see also R Stevens, 'Vicarious Liability or Vicarious Action' (2007) 123 Law Quarterly Review 30; <i><a href="/w/index.php?title=Middleton_v_Folwer&action=edit&redlink=1" class="new" title="Middleton v Folwer (page does not exist)">Middleton v Folwer</a></i> (1699) 1 Salk 282 and <i><a href="/w/index.php?title=Ackworth_v_Kempe&action=edit&redlink=1" class="new" title="Ackworth v Kempe (page does not exist)">Ackworth v Kempe</a></i> (1778) 1 Dougl 40</span> </li> <li id="cite_note-41"><span class="mw-cite-backlink"><b><a href="#cite_ref-41">^</a></b></span> <span class="reference-text">Lord Haldane <i><a href="/wiki/Lennard%27s_Carrying_Co_Ltd_v_Asiatic_Petroleum_Co_Ltd" title="Lennard's Carrying Co Ltd v Asiatic Petroleum Co Ltd">Lennard's Carrying Co Ltd v Asiatic Petroleum Co Ltd</a></i> [1915] AC 705; see also, <i><a href="/w/index.php?title=Bolton_v_Graham_%26_Sons_Limited&action=edit&redlink=1" class="new" title="Bolton v Graham & Sons Limited (page does not exist)">Bolton v Graham & Sons Limited</a></i>, per Lord Denning, "A company may in many ways be likened to a human body. It has a brain and nerve centre which controls what it does. It also has hands which hold the tools and act in accordance with directions from the centre... (the) directors and managers represent the directing mind and will of the company and control what it does. The state of mind of these managers is the state of mind of the company and is treated by the law as such."</span> </li> <li id="cite_note-42"><span class="mw-cite-backlink"><b><a href="#cite_ref-42">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/Tesco_Supermarkets_v_Nattrass" class="mw-redirect" title="Tesco Supermarkets v Nattrass">Tesco Supermarkets v Nattrass</a></i> [1972] AC 153</span> </li> <li id="cite_note-43"><span class="mw-cite-backlink"><b><a href="#cite_ref-43">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Williams_v_Natural_Life_Health_Foods_Ltd" title="Williams v Natural Life Health Foods Ltd">Williams v Natural Life Health Foods Ltd</a></i> [1998] <a rel="nofollow" class="external text" href="https://publications.parliament.uk/pa/ld199798/ldjudgmt/jd980430/williams.htm">1 WLR 830</a></span> </li> <li id="cite_note-44"><span class="mw-cite-backlink"><b><a href="#cite_ref-44">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Salomon_v_A_Salomon_%26_Co_Ltd" title="Salomon v A Salomon & Co Ltd">Salomon v A Salomon & Co Ltd</a></i> [1897] AC 22</span> </li> <li id="cite_note-45"><span class="mw-cite-backlink"><b><a href="#cite_ref-45">^</a></b></span> <span class="reference-text">See R Grantham, 'The Doctrinal Basis of Company Law' (1998) 57 Cambridge Law Journal 554, 560</span> </li> <li id="cite_note-46"><span class="mw-cite-backlink"><b><a href="#cite_ref-46">^</a></b></span> <span class="reference-text">See also, <i><a href="/wiki/Lee_v_Lee%27s_Air_Farming_Ltd" title="Lee v Lee's Air Farming Ltd">Lee v Lee's Air Farming Ltd</a></i></span> </li> <li id="cite_note-47"><span class="mw-cite-backlink"><b><a href="#cite_ref-47">^</a></b></span> <span class="reference-text">Or "shadow directors", defined under IA 1986 s 251 as "a person in accordance with whose directions or instructions the directors of the company are accustomed to act". See <i><a href="/wiki/Re_Hydrodam_(Corby)_Ltd" class="mw-redirect" title="Re Hydrodam (Corby) Ltd">Re Hydrodam (Corby) Ltd</a></i> [1994] BCC 161.</span> </li> <li id="cite_note-48"><span class="mw-cite-backlink"><b><a href="#cite_ref-48">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Daimler_Co_Ltd_v_Continental_Tyre_and_Rubber_Co_(Great_Britain)_Ltd" class="mw-redirect" title="Daimler Co Ltd v Continental Tyre and Rubber Co (Great Britain) Ltd">Daimler Co Ltd v Continental Tyre and Rubber Co (Great Britain) Ltd</a></i> [1916] 2 AC 307</span> </li> <li id="cite_note-49"><span class="mw-cite-backlink"><b><a href="#cite_ref-49">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/Re_Darby,_ex_parte_Brougham" class="mw-redirect" title="Re Darby, ex parte Brougham">Re Darby, ex parte Brougham</a></i> [1911] 1 KB 95</span> </li> <li id="cite_note-50"><span class="mw-cite-backlink"><b><a href="#cite_ref-50">^</a></b></span> <span class="reference-text">[1990] Ch 433. Heavily doubted by <a href="/wiki/Jonathan_Mance,_Baron_Mance" title="Jonathan Mance, Baron Mance">Lord Mance</a> in <i><a href="/wiki/VTB_Capital_plc_v_Nutritek_Int_Corp" class="mw-redirect" title="VTB Capital plc v Nutritek Int Corp">VTB Capital plc v Nutritek Int Corp</a></i> [2013] UKSC 5, [127] 'they include obiter observations and are anyway not binding in this court'.</span> </li> <li id="cite_note-51"><span class="mw-cite-backlink"><b><a href="#cite_ref-51">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Jones_v_Lipman" title="Jones v Lipman">Jones v Lipman</a></i> [1962] 1 WLR 832, where to avoid an order for <a href="/wiki/Specific_performance" title="Specific performance">specific performance</a>, Mr Lipman sold his house to a company. Russell J held that this attempt to avoid a pre-existing obligation meant the court could ignore the separate legal identity of the company and award specific performance as a remedy anyway.</span> </li> <li id="cite_note-52"><span class="mw-cite-backlink"><b><a href="#cite_ref-52">^</a></b></span> <span class="reference-text">[2012] EWCA Civ 525. E McGaughey, 'Donoghue v Salomon in the High Court' (2011) 4 Journal of Personal Injury Law 249, on <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=2237965">SSRN</a>. See also <i><a href="/w/index.php?title=Connelly_v_RTZ_Corp_Plc&action=edit&redlink=1" class="new" title="Connelly v RTZ Corp Plc (page does not exist)">Connelly v RTZ Corp Plc</a></i> [1998] AC 854 and <i><a href="/wiki/Lubbe_v_Cape_Plc" class="mw-redirect" title="Lubbe v Cape Plc">Lubbe v Cape Plc</a></i> [2000] 1 WLR 1545.</span> </li> <li id="cite_note-53"><span class="mw-cite-backlink"><b><a href="#cite_ref-53">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Woolfson_v_Strathclyde_Regional_Council" title="Woolfson v Strathclyde Regional Council">Woolfson v Strathclyde Regional Council</a></i> (1978) SLT 159; see also, <i><a href="/w/index.php?title=The_Albazero&action=edit&redlink=1" class="new" title="The Albazero (page does not exist)">The Albazero</a></i> [1977] AC 774, 807; <i><a href="/w/index.php?title=Re_A_Company&action=edit&redlink=1" class="new" title="Re A Company (page does not exist)">Re A Company</a></i> [1985] 1 BCC 99421; <i><a href="/wiki/Bank_of_Tokyo_Ltd_v_Karoon" title="Bank of Tokyo Ltd v Karoon">Bank of Tokyo Ltd v Karoon</a></i> [1987] AC 45n, 64; cf <i><a href="/w/index.php?title=Canada_Safeway_Ltd_v_Local_373,_Canadian_Food_and_Allied_Workers&action=edit&redlink=1" class="new" title="Canada Safeway Ltd v Local 373, Canadian Food and Allied Workers (page does not exist)">Canada Safeway Ltd v Local 373, Canadian Food and Allied Workers</a></i> (1974) 46 DLR (3d) 113, and contrast <i><a href="/w/index.php?title=Dimbleby_%26_Sons_Ltd_v_National_Union_of_Journalists&action=edit&redlink=1" class="new" title="Dimbleby & Sons Ltd v National Union of Journalists (page does not exist)">Dimbleby & Sons Ltd v National Union of Journalists</a></i> [1984] 1 All ER 751</span> </li> <li id="cite_note-54"><span class="mw-cite-backlink"><b><a href="#cite_ref-54">^</a></b></span> <span class="reference-text"><i><a href="/wiki/DHN_Food_Distributors_Ltd_v_Tower_Hamlets_London_Borough_Council" class="mw-redirect" title="DHN Food Distributors Ltd v Tower Hamlets London Borough Council">DHN Food Distributors Ltd v Tower Hamlets London Borough Council</a></i> [1976] 1 WLR 852; see also <i><a href="/wiki/Littlewoods_Mail_Order_Stores_v_Inland_Revenue_Commissioners" class="mw-redirect" title="Littlewoods Mail Order Stores v Inland Revenue Commissioners">Littlewoods Mail Order Stores v Inland Revenue Commissioners</a></i> [1969] 1 WLR 1214; <i><a href="/wiki/Wallersteiner_v_Moir" title="Wallersteiner v Moir">Wallersteiner v Moir</a></i> [1974] 1 WLR 991</span> </li> <li id="cite_note-55"><span class="mw-cite-backlink"><b><a href="#cite_ref-55">^</a></b></span> <span class="reference-text">This terminology follows from AA Berle, 'The Theory of Enterprise Entity' (1947) <a rel="nofollow" class="external text" href="https://www.jstor.org/pss/1118398">47(3) Columbia Law Review 343</a>, and is a concept used in <a href="/wiki/German_company_law" title="German company law">German company law</a>. See C Alting, 'Piercing the corporate veil in German and American law - Liability of individuals and entities: a comparative view' (1994–1995) 2 Tulsa Journal Comparative & International Law 187.</span> </li> <li id="cite_note-56"><span class="mw-cite-backlink"><b><a href="#cite_ref-56">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFDignamOh2020" class="citation journal cs1">Dignam, Alan; Oh, Peter (June 2020). <a rel="nofollow" class="external text" href="https://www.cambridge.org/core/product/identifier/S0261387520000070/type/journal_article">"Rationalising corporate disregard"</a>. <i>Legal Studies</i>. <b>40</b> (2): 187–208. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1017%2Flst.2020.7">10.1017/lst.2020.7</a>. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/0261-3875">0261-3875</a>. <a href="/wiki/S2CID_(identifier)" class="mw-redirect" title="S2CID (identifier)">S2CID</a> <a rel="nofollow" class="external text" href="https://api.semanticscholar.org/CorpusID:218916703">218916703</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Legal+Studies&rft.atitle=Rationalising+corporate+disregard&rft.volume=40&rft.issue=2&rft.pages=187-208&rft.date=2020-06&rft_id=https%3A%2F%2Fapi.semanticscholar.org%2FCorpusID%3A218916703%23id-name%3DS2CID&rft.issn=0261-3875&rft_id=info%3Adoi%2F10.1017%2Flst.2020.7&rft.aulast=Dignam&rft.aufirst=Alan&rft.au=Oh%2C+Peter&rft_id=https%3A%2F%2Fwww.cambridge.org%2Fcore%2Fproduct%2Fidentifier%2FS0261387520000070%2Ftype%2Fjournal_article&rfr_id=info%3Asid%2Fen.wikipedia.org%3AUnited+Kingdom+company+law" class="Z3988"></span></span> </li> <li id="cite_note-57"><span class="mw-cite-backlink"><b><a href="#cite_ref-57">^</a></b></span> <span class="reference-text">See <a href="/wiki/C_Mitchell" class="mw-redirect" title="C Mitchell">C Mitchell</a>, 'Lifting the Corporate Veil in the. English Courts: An Empirical Study' (1999) 3 Company, Financial and Insolvency Law Review 15.</span> </li> <li id="cite_note-58"><span class="mw-cite-backlink"><b><a href="#cite_ref-58">^</a></b></span> <span class="reference-text"><a href="/wiki/Second_Company_Law_Directive" title="Second Company Law Directive">Second Company Law Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012L0030:EN:NOT">2012/30/EU</a> art 6 requires a €25,000 minimum</span> </li> <li id="cite_note-59"><span class="mw-cite-backlink"><b><a href="#cite_ref-59">^</a></b></span> <span class="reference-text">(1999) <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:61997J0212:EN:HTML">C-212/97</a>, [36]-[38]</span> </li> <li id="cite_note-60"><span class="mw-cite-backlink"><b><a href="#cite_ref-60">^</a></b></span> <span class="reference-text"><a href="/wiki/GmbHG" class="mw-redirect" title="GmbHG">GmbHG</a> §5a</span> </li> <li id="cite_note-61"><span class="mw-cite-backlink"><b><a href="#cite_ref-61">^</a></b></span> <span class="reference-text">For support for minimum capital, on the basis that it prevents frivolous incorporations, see H Eidenmueller, B Grunewald and U Noack, 'Minimum Capital in the System of Legal Capital' in M Lutter (ed), Legal Capital in Europe (2006) European and Company Financial Law Review, Special Volume 25</span> </li> <li id="cite_note-62"><span class="mw-cite-backlink"><b><a href="#cite_ref-62">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/section/584">584</a></span> </li> <li id="cite_note-63"><span class="mw-cite-backlink"><b><a href="#cite_ref-63">^</a></b></span> <span class="reference-text"><i><a href="/wiki/In_re_Wragg_Ltd" class="mw-redirect" title="In re Wragg Ltd">In re Wragg Ltd</a></i> [1897] 1 Ch 796, per Lindley LJ. This was based on a heavily <i><a href="/wiki/Laissez_faire" class="mw-redirect" title="Laissez faire">laissez faire</a></i> viewpoint: "We must not allow ourselves to be misled by talking of <a href="/wiki/Value_(economics)" title="Value (economics)">value</a>. The value paid to the company is measured by the price at which the company agrees to buy what it thinks it worth its while to acquire. Whilst the transaction is unimpeached, this is the only value to be considered."</span> </li> <li id="cite_note-64"><span class="mw-cite-backlink"><b><a href="#cite_ref-64">^</a></b></span> <span class="reference-text">cf <i><a href="/w/index.php?title=In_re_White_Star_Line_Ltd&action=edit&redlink=1" class="new" title="In re White Star Line Ltd (page does not exist)">In re White Star Line Ltd</a></i> [1938] Ch 458 and <i><a href="/wiki/Pilmer_v_Duke_Group_Ltd" class="mw-redirect" title="Pilmer v Duke Group Ltd">Pilmer v Duke Group Ltd</a></i> [2001] 2 BCLC 773</span> </li> <li id="cite_note-65"><span class="mw-cite-backlink"><b><a href="#cite_ref-65">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/section/585">585</a>, and Directive <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012L0030:EN:NOT">2012/30/EU</a> art 7</span> </li> <li id="cite_note-66"><span class="mw-cite-backlink"><b><a href="#cite_ref-66">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/17/chapter/6/crossheading/noncash-consideration-for-shares">593-597</a> and Directive <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012L0030:EN:NOT">2012/30/EU</a> art 10</span> </li> <li id="cite_note-67"><span class="mw-cite-backlink"><b><a href="#cite_ref-67">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Ooregum_Gold_Mining_Co_of_India_v_Roper" title="Ooregum Gold Mining Co of India v Roper">Ooregum Gold Mining Co of India v Roper</a></i> [1892] AC 125 invented the common law rule that shares cannot be issued at a discount on their nominal value. <i><a href="/wiki/Mosely_v_Kofffontein_Mines_Ltd" class="mw-redirect" title="Mosely v Kofffontein Mines Ltd">Mosely v Kofffontein Mines Ltd</a></i> [1904] 2 Ch 108 held this also applied to bonds convertible into shares. <i><a href="/wiki/Hilder_v_Dexter" title="Hilder v Dexter">Hilder v Dexter</a></i> [1902] AC 474 held that options attached to shares issued at nominal value to buy later, if the share price rose, did not infringe the rule.</span> </li> <li id="cite_note-68"><span class="mw-cite-backlink"><b><a href="#cite_ref-68">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s 542 and Directive <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012L0030:EN:NOT">2012/30/EU</a> art 8. <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss 588-9, subsequent holders of shares are jointly liable with a previous owner for any contravention of the Act unless they are a <i>bona fide</i> purchaser. Under CA 2006 ss <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/17/chapter/5/crossheading/additional-rules-for-public-companies">584-7</a>, the court can grant relief if just and equitable considering how much value is actually conferred.</span> </li> <li id="cite_note-69"><span class="mw-cite-backlink"><b><a href="#cite_ref-69">^</a></b></span> <span class="reference-text">See Gedge Committee, <i>Report of the Committee on Shares of No Par Value</i> (1954) Cmd 9112 and Company Law Review Steering Group, <i>The Strategic Framework</i> (1999) 'the requirement that shares should have a nominal value has become an anachronism.'</span> </li> <li id="cite_note-70"><span class="mw-cite-backlink"><b><a href="#cite_ref-70">^</a></b></span> <span class="reference-text">CA 2006 ss <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/23/chapter/1/crossheading/general-rules">830-831</a> and Directive <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012L0030:EN:NOT">2012/30/EU</a> art 15</span> </li> <li id="cite_note-71"><span class="mw-cite-backlink"><b><a href="#cite_ref-71">^</a></b></span> <span class="reference-text"><a href="/wiki/Companies_(Model_Articles)_Regulations_2008" title="Companies (Model Articles) Regulations 2008">Companies (Model Articles) Regulations 2008</a> Sch 3, <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/uksi/2008/3229/schedule/3/made">para 70</a>. Sch 3 <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/uksi/2008/3229/schedule/3/made">para 4</a>, also allows shareholders the instruction right to get the dividends paid out with a 75% vote.</span> </li> <li id="cite_note-72"><span class="mw-cite-backlink"><b><a href="#cite_ref-72">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Re_Halt_Garage" class="mw-redirect" title="Re Halt Garage">Re Halt Garage</a></i> [1982] 3 All ER 1016, Oliver J</span> </li> <li id="cite_note-73"><span class="mw-cite-backlink"><b><a href="#cite_ref-73">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Aveling_Barford_Ltd_v_Period_Ltd" class="mw-redirect" title="Aveling Barford Ltd v Period Ltd">Aveling Barford Ltd v Period Ltd</a></i> [1989] BCLC 626, Hoffmann J</span> </li> <li id="cite_note-74"><span class="mw-cite-backlink"><b><a href="#cite_ref-74">^</a></b></span> <span class="reference-text">[2010] UKSC 55</span> </li> <li id="cite_note-75"><span class="mw-cite-backlink"><b><a href="#cite_ref-75">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss 847</span> </li> <li id="cite_note-76"><span class="mw-cite-backlink"><b><a href="#cite_ref-76">^</a></b></span> <span class="reference-text">See J Payne, 'Unjust Enrichment, Trusts and Recipient Liability For Unlawful Dividends' (2003) 119 LQR 583</span> </li> <li id="cite_note-77"><span class="mw-cite-backlink"><b><a href="#cite_ref-77">^</a></b></span> <span class="reference-text">[2006] EWCA Civ 544</span> </li> <li id="cite_note-78"><span class="mw-cite-backlink"><b><a href="#cite_ref-78">^</a></b></span> <span class="reference-text"><i><a href="/wiki/In_re_Exchange_Banking_Company" class="mw-redirect" title="In re Exchange Banking Company">In re Exchange Banking Company</a></i> or <i>Flitcroft's Case</i> (1882) LR 21 Ch D 519 and <i><a href="/wiki/Bairstow_v_Queen%27s_Moat_Houses_plc" class="mw-redirect" title="Bairstow v Queen's Moat Houses plc">Bairstow v Queen's Moat Houses plc</a></i> [2001] EWCA Civ 712</span> </li> <li id="cite_note-79"><span class="mw-cite-backlink"><b><a href="#cite_ref-79">^</a></b></span> <span class="reference-text">See, for example, M Moritz, 'Manchester United opens window on murky world of leveraged buy-outs' (<a rel="nofollow" class="external text" href="https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7083750/Manchester-United-opens-window-on-murky-world-of-leveraged-buy-outs.html">27 June 2010</a>) Daily Telegraph</span> </li> <li id="cite_note-80"><span class="mw-cite-backlink"><b><a href="#cite_ref-80">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/17/chapter/10">641-644</a></span> </li> <li id="cite_note-81"><span class="mw-cite-backlink"><b><a href="#cite_ref-81">^</a></b></span> <span class="reference-text">CA 2006 ss <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/17/chapter/10/crossheading/reduction-of-capital-confirmed-by-the-court">645-653</a></span> </li> <li id="cite_note-82"><span class="mw-cite-backlink"><b><a href="#cite_ref-82">^</a></b></span> <span class="reference-text">CA 2006 s <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/section/646">646(4)</a></span> </li> <li id="cite_note-83"><span class="mw-cite-backlink"><b><a href="#cite_ref-83">^</a></b></span> <span class="reference-text"><a href="/wiki/Second_Company_Law_Directive" title="Second Company Law Directive">Second Company Law Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012L0030:EN:NOT">2012/30/EU</a> art 46</span> </li> <li id="cite_note-84"><span class="mw-cite-backlink"><b><a href="#cite_ref-84">^</a></b></span> <span class="reference-text">See <i><a href="/w/index.php?title=Re_Chatterley-Whitfield_Collieries_Ltd&action=edit&redlink=1" class="new" title="Re Chatterley-Whitfield Collieries Ltd (page does not exist)">Re Chatterley-Whitfield Collieries Ltd</a></i> [1948] 2 All ER 593, per Lord Greene MR. Further <i><a href="/w/index.php?title=Re_Saltdean_Estate_Co_Ltd&action=edit&redlink=1" class="new" title="Re Saltdean Estate Co Ltd (page does not exist)">Re Saltdean Estate Co Ltd</a></i> [1968] 3 All ER 829, cf <i><a href="/w/index.php?title=Re_Northern_Engineering_Industries_plc&action=edit&redlink=1" class="new" title="Re Northern Engineering Industries plc (page does not exist)">Re Northern Engineering Industries plc</a></i> [1994] 2 BCLC 704</span> </li> <li id="cite_note-85"><span class="mw-cite-backlink"><b><a href="#cite_ref-85">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Trevor_v_Whitworth" title="Trevor v Whitworth">Trevor v Whitworth</a></i> (1887) 12 App Cas 409</span> </li> <li id="cite_note-86"><span class="mw-cite-backlink"><b><a href="#cite_ref-86">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/18/chapter/3">684-690</a> and <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/section/735">735</a>. See <i><a href="/w/index.php?title=Culross_Global_SPC_Ltd_v_Strategic_Turnaround_Master_Partnership_Ltd&action=edit&redlink=1" class="new" title="Culross Global SPC Ltd v Strategic Turnaround Master Partnership Ltd (page does not exist)">Culross Global SPC Ltd v Strategic Turnaround Master Partnership Ltd</a></i> [2010] UKPC 33, a Cayman Islands mutual fund could suspend share redemptions under its articles, but not suspend payment of redemption proceeds after giving a valid redemption notice.</span> </li> <li id="cite_note-87"><span class="mw-cite-backlink"><b><a href="#cite_ref-87">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/18/chapter/5/crossheading/requirements-for-payment-out-of-capital">714-717</a></span> </li> <li id="cite_note-88"><span class="mw-cite-backlink"><b><a href="#cite_ref-88">^</a></b></span> <span class="reference-text">Listing Rule 12.4.2-3</span> </li> <li id="cite_note-89"><span class="mw-cite-backlink"><b><a href="#cite_ref-89">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s 707</span> </li> <li id="cite_note-90"><span class="mw-cite-backlink"><b><a href="#cite_ref-90">^</a></b></span> <span class="reference-text">e.g. R Dobbs and W Rehm, 'Debating Point: Are share buybacks a good thing?' (28 June 2006) <a href="/wiki/Financial_Times" title="Financial Times">Financial Times</a></span> </li> <li id="cite_note-91"><span class="mw-cite-backlink"><b><a href="#cite_ref-91">^</a></b></span> <span class="reference-text">See Greene Committee, Company Law Amendment Committee Report (1925-1926) <a rel="nofollow" class="external text" href="http://www.takeovers.gov.au/content/Resources/other_resources/Greene_Committee.aspx">Cmnd 2657</a> §30 and Jenkins Committee, Report of the Company Law Committee (1962) <a rel="nofollow" class="external text" href="http://www.takeovers.gov.au/content/Resources/other_resources/downloads/jenkins_committee.pdf">Cmnd 6707</a> §173</span> </li> <li id="cite_note-92"><span class="mw-cite-backlink"><b><a href="#cite_ref-92">^</a></b></span> <span class="reference-text">cf <a href="/wiki/PL_Davies" class="mw-redirect" title="PL Davies">PL Davies</a> and S Worthington, <i>Principles of Modern Company Law</i> (2012) 360, 13-44</span> </li> <li id="cite_note-93"><span class="mw-cite-backlink"><b><a href="#cite_ref-93">^</a></b></span> <span class="reference-text"><a href="/wiki/Companies_Act_1929" title="Companies Act 1929">Companies Act 1929</a> s 45</span> </li> <li id="cite_note-94"><span class="mw-cite-backlink"><b><a href="#cite_ref-94">^</a></b></span> <span class="reference-text"><a href="/wiki/Second_Company_Law_Directive" title="Second Company Law Directive">Second Company Law Directive</a> art 25 and <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/18/chapter/2">677-678</a></span> </li> <li id="cite_note-95"><span class="mw-cite-backlink"><b><a href="#cite_ref-95">^</a></b></span> <span class="reference-text">J Armour, 'Share Capital and Creditor Protection: Efficient Rules for a Modern Company Law' (2000) 63(3) Modern Law Review 355, 374, also noting that "LBOs do have the capacity to harm creditors" and some are motivated by "asset stripping" even though empirical studies suggest gains to other groups are high.</span> </li> <li id="cite_note-auto-96"><span class="mw-cite-backlink">^ <a href="#cite_ref-auto_96-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-auto_96-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text">[1999] 1 BCLC 433</span> </li> <li id="cite_note-97"><span class="mw-cite-backlink"><b><a href="#cite_ref-97">^</a></b></span> <span class="reference-text">See CA 2006 s 17. Prior to CA 2006, the constitution was also composed of a "<a href="/wiki/Memorandum_of_association" title="Memorandum of association">memorandum of association</a>", which contained basic company information and was unalterable. Now the "memorandum" merely refers to a document signed by initial shareholders at a company formation under CA 2006 s 8.</span> </li> <li id="cite_note-98"><span class="mw-cite-backlink"><b><a href="#cite_ref-98">^</a></b></span> <span class="reference-text">See the <a href="/wiki/Companies_(Model_Articles)_Regulations_2008" title="Companies (Model Articles) Regulations 2008">Companies (Model Articles) Regulations 2008</a> (SI 2008/3229) with differing provisions for private and public companies, previously known as "<a href="/wiki/Table_A" title="Table A">Table A</a>".</span> </li> <li id="cite_note-99"><span class="mw-cite-backlink"><b><a href="#cite_ref-99">^</a></b></span> <span class="reference-text">CA 2006 s 20</span> </li> <li id="cite_note-100"><span class="mw-cite-backlink"><b><a href="#cite_ref-100">^</a></b></span> <span class="reference-text">[2009] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKPC/2009/10.html">UKPC 10</a>, [16]; cf <i><a href="/wiki/Southern_Foundries_(1926)_Ltd_v_Shirlaw" title="Southern Foundries (1926) Ltd v Shirlaw">Southern Foundries (1926) Ltd v Shirlaw</a></i> [1940] AC 701</span> </li> <li id="cite_note-101"><span class="mw-cite-backlink"><b><a href="#cite_ref-101">^</a></b></span> <span class="reference-text">See also, <i><a href="/wiki/Investors_Compensation_Scheme_Ltd_v_West_Bromwich_Building_Society" title="Investors Compensation Scheme Ltd v West Bromwich Building Society">Investors Compensation Scheme Ltd v West Bromwich Building Society</a></i> [1998] 1 WLR 896</span> </li> <li id="cite_note-102"><span class="mw-cite-backlink"><b><a href="#cite_ref-102">^</a></b></span> <span class="reference-text">(1741) 26 ER 531</span> </li> <li id="cite_note-103"><span class="mw-cite-backlink"><b><a href="#cite_ref-103">^</a></b></span> <span class="reference-text">[1906] 2 Ch 34</span> </li> <li id="cite_note-104"><span class="mw-cite-backlink"><b><a href="#cite_ref-104">^</a></b></span> <span class="reference-text">The shareholder, Mr McDiarmid, brought the claim as a derivative action in the name of the company, given the rule in <i><a href="/wiki/Foss_v_Harbottle" title="Foss v Harbottle">Foss v Harbottle</a></i> (1843) 67 ER 189 presupposed a majority of shareholders could litigate</span> </li> <li id="cite_note-105"><span class="mw-cite-backlink"><b><a href="#cite_ref-105">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/John_Shaw_%26_Sons_(Salford)_Ltd_v_Shaw" title="John Shaw & Sons (Salford) Ltd v Shaw">John Shaw & Sons (Salford) Ltd v Shaw</a></i> [1935] 2 KB 113, Greer LJ, 'The only way in which the general body of the shareholders can control the exercise of the powers vested by the articles in the directors is by altering their articles, or, if the opportunity arises under the articles, by refusing to re-elect the directors of whose actions they disapprove.'</span> </li> <li id="cite_note-106"><span class="mw-cite-backlink"><b><a href="#cite_ref-106">^</a></b></span> <span class="reference-text"><i><a href="/w/index.php?title=Macdougall_v_Gardiner&action=edit&redlink=1" class="new" title="Macdougall v Gardiner (page does not exist)">Macdougall v Gardiner</a></i> (1875) 1 Ch D 13, holding that a director's refusal to take a poll of shareholders, validly requested under the company's articles, was not actionable because it was a "mere internal irregularity". This decision was not clearly based on any authority, and appears contradicted by the modern theory of construction. See also P Davies, <i>Gower and Davies' Principles of Modern Company Law</i> (8th edn Sweet and Maxwell 2008) 72; RJ Smith (1978) 41 MLR 147</span> </li> <li id="cite_note-107"><span class="mw-cite-backlink"><b><a href="#cite_ref-107">^</a></b></span> <span class="reference-text">(1877) 6 Ch D 70; cf <i><a href="/wiki/Ashby_v_White" title="Ashby v White">Ashby v White</a></i> (1703) 92 ER 126</span> </li> <li id="cite_note-108"><span class="mw-cite-backlink"><b><a href="#cite_ref-108">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Eley_v_Positive_Government_Security_Life_Assurance_Co_Ltd" title="Eley v Positive Government Security Life Assurance Co Ltd">Eley v Positive Government Security Life Assurance Co Ltd</a></i> (1876) 1 Ex D 88; but cf <i><a href="/wiki/Hickman_v_Kent_or_Romney_Marsh_Sheep-Breeders%27_Association" title="Hickman v Kent or Romney Marsh Sheep-Breeders' Association">Hickman v Kent or Romney Marsh Sheep-Breeders' Association</a></i> [1915] 1 Ch 881</span> </li> <li id="cite_note-109"><span class="mw-cite-backlink"><b><a href="#cite_ref-109">^</a></b></span> <span class="reference-text">The <a href="/wiki/Contracts_(Rights_of_Third_Parties)_Act_1999" title="Contracts (Rights of Third Parties) Act 1999">Contracts (Rights of Third Parties) Act 1999</a> s 6, excludes the Companies Acts from its scope; however the rule of privity is unsteady on orthodox principles, see <i><a href="/wiki/Smith_and_Snipes_Hall_Farm_Ltd_v_River_Douglas_Catchment_Board" title="Smith and Snipes Hall Farm Ltd v River Douglas Catchment Board">Smith and Snipes Hall Farm Ltd v River Douglas Catchment Board</a></i> [1949] 2 KB 500</span> </li> <li id="cite_note-110"><span class="mw-cite-backlink"><b><a href="#cite_ref-110">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Russell_v_Northern_Bank_Development_Corp_Ltd" title="Russell v Northern Bank Development Corp Ltd">Russell v Northern Bank Development Corp Ltd</a></i> [1992] 1 WLR 588</span> </li> <li id="cite_note-111"><span class="mw-cite-backlink"><b><a href="#cite_ref-111">^</a></b></span> <span class="reference-text">Hansard HC 585 (6 June 1947) vol 438 cols 585-588, Companies Bill, 2nd Reading, Sir Stafford Cripps.</span> </li> <li id="cite_note-112"><span class="mw-cite-backlink"><b><a href="#cite_ref-112">^</a></b></span> <span class="reference-text">cf <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s 172, which requires directors "promote the success of the company" for the benefit of members with regard to stakeholders (but at no point refers to shareholders). This said, members usually are shareholders, and because shareholders tend to monopolise voting rights, directors invariably follow shareholder interests. There is, however, no legal duty.</span> </li> <li id="cite_note-113"><span class="mw-cite-backlink"><b><a href="#cite_ref-113">^</a></b></span> <span class="reference-text">In closely held, private companies, the mandatory removal right in <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s 168 is qualified by the majority House of Lords decision in <i><a href="/wiki/Bushell_v_Faith" title="Bushell v Faith">Bushell v Faith</a></i> [1970] AC 1099, holding that a company's articles could allow a shareholder's votes to triple if facing removal as a director. This followed the Cohen Report's recommendations.</span> </li> <li id="cite_note-114"><span class="mw-cite-backlink"><b><a href="#cite_ref-114">^</a></b></span> <span class="reference-text">CA 2006 s 168, previously <a href="/wiki/Companies_Act_1985" title="Companies Act 1985">Companies Act 1985</a>, section 303, implemented in the <a href="/wiki/Companies_Act_1947" title="Companies Act 1947">Companies Act 1947</a>, following recommendations of the <a href="/wiki/Cohen_Committee" class="mw-redirect" title="Cohen Committee">Cohen Committee</a>, <i>Report of the Committee on Company Law Amendment</i> (1945) <a rel="nofollow" class="external text" href="http://www.takeovers.gov.au/content/Resources/other_resources/Cohen_Committee.aspx">Cmd 6659</a>. See <a href="/w/index.php?title=EM_Dodd&action=edit&redlink=1" class="new" title="EM Dodd (page does not exist)">EM Dodd</a>, 'The Cohen Report' (1945) 58 <a href="/wiki/Harvard_Law_Review" title="Harvard Law Review">Harvard Law Review</a> 1258</span> </li> <li id="cite_note-115"><span class="mw-cite-backlink"><b><a href="#cite_ref-115">^</a></b></span> <span class="reference-text">See <a href="/wiki/Aktiengesetz" class="mw-redirect" title="Aktiengesetz">Aktiengesetz</a> 1965 §76. This is the <a href="/wiki/Vorstand" title="Vorstand">Vorstand</a>, or the "executive" of the company that carries out all functions of management, rather than the <a href="/wiki/Aufsichtsrat" class="mw-redirect" title="Aufsichtsrat">Aufsichtsrat</a> or supervisory council, which appoints it and is in turn elected by shareholders and employees.</span> </li> <li id="cite_note-116"><span class="mw-cite-backlink"><b><a href="#cite_ref-116">^</a></b></span> <span class="reference-text">See <a href="/wiki/Delaware_General_Corporation_Law" title="Delaware General Corporation Law">Delaware General Corporation Law</a> s 141(k) and <i><a href="/w/index.php?title=Ralph_B._Campbell_v._Loews,_Inc&action=edit&redlink=1" class="new" title="Ralph B. Campbell v. Loews, Inc (page does not exist)">Ralph B. Campbell v. Loews, Inc</a></i> <a rel="nofollow" class="external text" href="http://content.lawyerlinks.com/default.htm#http://content.lawyerlinks.com/library/sec/cases/134_a2d_852.htm">134 A.2d 852</a> (1957); for a comprehensive critique, see <a href="/wiki/AA_Berle" class="mw-redirect" title="AA Berle">AA Berle</a> and GC Means, <i><a href="/wiki/The_Modern_Corporation_and_Private_Property" title="The Modern Corporation and Private Property">The Modern Corporation and Private Property</a></i> (1932)</span> </li> <li id="cite_note-117"><span class="mw-cite-backlink"><b><a href="#cite_ref-117">^</a></b></span> <span class="reference-text">CA 2006 s 283 (special resolution definition), ss 21-22 (amending the constitution)</span> </li> <li id="cite_note-118"><span class="mw-cite-backlink"><b><a href="#cite_ref-118">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/13/chapter/3">ss 303-305</a>, as amended by Companies (Shareholders' Rights) Regulations 2009/1632 Pt 2, reg 4</span> </li> <li id="cite_note-119"><span class="mw-cite-backlink"><b><a href="#cite_ref-119">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/13/chapter/3/crossheading/members-statements">s 314</a></span> </li> <li id="cite_note-120"><span class="mw-cite-backlink"><b><a href="#cite_ref-120">^</a></b></span> <span class="reference-text"><a href="/wiki/UK_Listing_Authority" class="mw-redirect" title="UK Listing Authority">UKLA</a> <a href="/w/index.php?title=Listing_Rule&action=edit&redlink=1" class="new" title="Listing Rule (page does not exist)">Listing Rule</a> 10.</span> </li> <li id="cite_note-121"><span class="mw-cite-backlink"><b><a href="#cite_ref-121">^</a></b></span> <span class="reference-text">CA 2006 ss 366-368 and 378 require a resolution, itemising the money to be donated, be passed by shareholders for any political contributions over £5000 in 12 months, lasting a maximum of four years.</span> </li> <li id="cite_note-122"><span class="mw-cite-backlink"><b><a href="#cite_ref-122">^</a></b></span> <span class="reference-text">CA 2006 s 439; other transactions where directors have a conflict of interest that require binding approval of shareholders are ratification of corporate opportunities, large self dealing transactions and service contracts lasting over two years.</span> </li> <li id="cite_note-123"><span class="mw-cite-backlink"><b><a href="#cite_ref-123">^</a></b></span> <span class="reference-text">See PL Davies and S Worthington, <i>Gower and Davies' Principles of Modern Company Law</i> (2016) 15-27 'Conflicts of interest and inactivity'. E McGaughey, 'Does Corporate Governance Exclude the Ultimate Investor?' (2016) <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=2666955">16(1) Journal of Corporate Law Studies 221</a>.</span> </li> <li id="cite_note-124"><span class="mw-cite-backlink"><b><a href="#cite_ref-124">^</a></b></span> <span class="reference-text">See PL Davies and S Worthington, <i>Gower and Davies' Principles of Modern Company Law</i> (2016) 15-27 'Conflicts of interest and inactivity'. <a href="/wiki/A_Smith" class="mw-redirect" title="A Smith">A Smith</a>, <i><a href="/wiki/An_Inquiry_into_the_Nature_and_Causes_of_the_Wealth_of_Nations" class="mw-redirect" title="An Inquiry into the Nature and Causes of the Wealth of Nations">An Inquiry into the Nature and Causes of the Wealth of Nations</a></i> (1776) <a rel="nofollow" class="external text" href="http://www.ibiblio.org/ml/libri/s/SmithA_WealthNations_p.pdf">Book V, ch 1, para 107</a> and <a href="/wiki/LD_Brandeis" class="mw-redirect" title="LD Brandeis">LD Brandeis</a>, <i><a href="/wiki/Other_People%27s_Money_And_How_the_Bankers_Use_It" class="mw-redirect" title="Other People's Money And How the Bankers Use It">Other People's Money And How the Bankers Use It</a></i> (1914)</span> </li> <li id="cite_note-125"><span class="mw-cite-backlink"><b><a href="#cite_ref-125">^</a></b></span> <span class="reference-text">E McGaughey, 'Does Corporate Governance Exclude the Ultimate Investor?' (2016) <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=2666955">16(1) Journal of Corporate Law Studies 221</a> and RC Nolan, 'Indirect Investors: A Greater Say in the Company?' (2003) 3(1) Journal of Corporate Law Studies 73</span> </li> <li id="cite_note-126"><span class="mw-cite-backlink"><b><a href="#cite_ref-126">^</a></b></span> <span class="reference-text"><a href="/w/index.php?title=Hampel_Committee&action=edit&redlink=1" class="new" title="Hampel Committee (page does not exist)">Hampel Committee</a>, <i>Committee on Corporate Governance: Final Report</i> (1998) para 5.7, 'The right to vote is an important part of the asset represented by a share, and in our view an institution has a responsibility to the client to make considered use of it.' Also <a href="/wiki/Cadbury_Report" title="Cadbury Report">Cadbury Report</a>, <i>Financial Aspects of Corporate Governance</i> (1992) para 6.12</span> </li> <li id="cite_note-127"><span class="mw-cite-backlink"><b><a href="#cite_ref-127">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Butt_v_Kelson" title="Butt v Kelson">Butt v Kelson</a></i> [1952] Ch 197, <i><a href="/wiki/Lehman_Brothers_International_(Europe)_v_CRC_Credit_Fund_Ltd" class="mw-redirect" title="Lehman Brothers International (Europe) v CRC Credit Fund Ltd">Lehman Brothers International (Europe) v CRC Credit Fund Ltd</a></i> [2010] EWCA Civ 917, [171] and <i><a href="/wiki/Barlow_Clowes_International_Ltd_v_Vaughan" class="mw-redirect" title="Barlow Clowes International Ltd v Vaughan">Barlow Clowes International Ltd v Vaughan</a></i> [1991] EWCA Civ 11, Dillon LJ, 'it is accepted that... the assets and moneys in question are trust moneys held on trust for all or some of the would-be investors ("the investors") who paid moneys to BCI or associated bodies for investment, and are not general assets of BCI.'</span> </li> <li id="cite_note-128"><span class="mw-cite-backlink"><b><a href="#cite_ref-128">^</a></b></span> <span class="reference-text">Discussed by E McGaughey, 'Does Corporate Governance Exclude the Ultimate Investor?' (2016) <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=2666955">16(1) Journal of Corporate Law Studies 221</a> and see further RC Nolan, 'Indirect Investors: A Greater Say in the Company?' (2003) 3(1) Journal of Corporate Law Studies 73</span> </li> <li id="cite_note-129"><span class="mw-cite-backlink"><b><a href="#cite_ref-129">^</a></b></span> <span class="reference-text">See BS Black and JC Coffee, 'Hail Britannia?: Institutional Investor Behavior Under Limited Regulation' (1994) <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=276991">92 Michigan Law Review 1997-2087</a></span> </li> <li id="cite_note-130"><span class="mw-cite-backlink"><b><a href="#cite_ref-130">^</a></b></span> <span class="reference-text">See in the US, <a href="/wiki/Dodd_Frank_Act_of_2010" class="mw-redirect" title="Dodd Frank Act of 2010">Dodd Frank Act of 2010</a> §957 (banning broker dealers from voting without instructions on any important issue, including director elections) and the Swiss, <i>Verordnung gegen übermässige Vergütungen bei börsenkotierten Aktiengesellschaften 2013</i> (banning banks from voting on behalf of any company investor, and placing a duty instead on pension funds to be active in their voting).</span> </li> <li id="cite_note-131"><span class="mw-cite-backlink"><b><a href="#cite_ref-131">^</a></b></span> <span class="reference-text">Discussed in E McGaughey, 'Votes at Work in Britain: Shareholder Monopolisation and the 'Single Channel' (2018) <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=2432068">47(1) Industrial Law Journal 76</a> and E McGaughey, <i>A Casebook on Labour Law</i> (<a rel="nofollow" class="external text" href="https://www.bloomsburyprofessional.com/uk/a-casebook-on-labour-law-9781849469302/">Hart 2019</a>) ch 11. In university corporations, see the <a href="/wiki/Oxford_University_Act_1854" title="Oxford University Act 1854">Oxford University Act 1854</a> ss 16 and 21, <a href="/wiki/Cambridge_University_Act_1856" title="Cambridge University Act 1856">Cambridge University Act 1856</a> ss 5 and 12. Also the <a href="/wiki/Further_and_Higher_Education_Act_1992" title="Further and Higher Education Act 1992">Further and Higher Education Act 1992</a>, ss 20(2) and 85, and Sch 4, para 4.</span> </li> <li id="cite_note-132"><span class="mw-cite-backlink"><b><a href="#cite_ref-132">^</a></b></span> <span class="reference-text">See also the <a href="/wiki/South_Metropolitan_Gas_Act_1896" class="mw-redirect" title="South Metropolitan Gas Act 1896">South Metropolitan Gas Act 1896</a> s 19, <a href="/wiki/Port_of_London_Act_1908" title="Port of London Act 1908">Port of London Act 1908</a> s 1(7), <a href="/wiki/Iron_and_Steel_Act_1967" title="Iron and Steel Act 1967">Iron and Steel Act 1967</a>, Sch 4, Part V, <a href="/wiki/Aircraft_and_Shipbuilding_Industries_Act_1977" title="Aircraft and Shipbuilding Industries Act 1977">Aircraft and Shipbuilding Industries Act 1977</a> s 2(8), <a href="/wiki/Post_Office_Act_1977" title="Post Office Act 1977">Post Office Act 1977</a> s 1</span> </li> <li id="cite_note-133"><span class="mw-cite-backlink"><b><a href="#cite_ref-133">^</a></b></span> <span class="reference-text">See M Weiss (ed) et al., <i>Handbook on employee involvement in Europe</i> (Kluwer 2004). For the most developed example, see in <a href="/wiki/German_labour_law" title="German labour law">German labour law</a> the <i><a href="/wiki/Mitbestimmungsgesetz" title="Mitbestimmungsgesetz">Mitbestimmungsgesetz</a></i> 1976 and the <i><a href="/wiki/Betriebsverfassungsgesetz" class="mw-redirect" title="Betriebsverfassungsgesetz">Betriebsverfassungsgesetz</a></i> 1972 §87. Member states with no participation rights are Belgium, Cyprus, Estonia, Italy, Latvia, Lithuania, Romania and the United Kingdom.</span> </li> <li id="cite_note-134"><span class="mw-cite-backlink"><b><a href="#cite_ref-134">^</a></b></span> <span class="reference-text"><a href="/wiki/Oxford_University_Act_1854" title="Oxford University Act 1854">Oxford University Act 1854</a> ss 16 and 21, <a href="/wiki/Cambridge_University_Act_1856" title="Cambridge University Act 1856">Cambridge University Act 1856</a> ss 5 and 12; cf <a href="/wiki/King%27s_College_London_Act_1997" title="King's College London Act 1997">King's College London Act 1997</a> s 15, though since amended. Discussed in E McGaughey, 'Votes at Work in Britain: Shareholder Monopolisation and the 'Single Channel' (2016) <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=2432068">ssrn.com</a></span> </li> <li id="cite_note-135"><span class="mw-cite-backlink"><b><a href="#cite_ref-135">^</a></b></span> <span class="reference-text">See <a href="/wiki/Employee_Involvement_Directive" class="mw-redirect" title="Employee Involvement Directive">Employee Involvement Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32001L0086:EN:NOT">2001/86/EC</a></span> </li> <li id="cite_note-136"><span class="mw-cite-backlink"><b><a href="#cite_ref-136">^</a></b></span> <span class="reference-text">See generally, <a href="/wiki/PL_Davies" class="mw-redirect" title="PL Davies">PL Davies</a>, 'Workers on the Board of the European Company?' (2003) <a rel="nofollow" class="external text" href="https://archive.today/20120709193446/http://ilj.oxfordjournals.org/cgi/content/short/32/2/75">32(2) Industrial Law Journal 75</a></span> </li> <li id="cite_note-137"><span class="mw-cite-backlink"><b><a href="#cite_ref-137">^</a></b></span> <span class="reference-text">(1977) Cmnd 6706; see also Lord Donovan, <i><a href="/wiki/Report_of_the_Royal_Commission_on_Trade_Unions_and_Employers%27_Associations" class="mw-redirect" title="Report of the Royal Commission on Trade Unions and Employers' Associations">Report of the Royal Commission on Trade Unions and Employers' Associations</a></i> (1965–1968) Cmnd 3623, §§997-1006, where the minority favoured worker directors in principle.</span> </li> <li id="cite_note-138"><span class="mw-cite-backlink"><b><a href="#cite_ref-138">^</a></b></span> <span class="reference-text">See KW Wedderburn, 'Employees, Partnership and Company Law' [2002] 31(2) Industrial Law Journal 99, a minor duty that could not be legally enforced was <a href="/wiki/CA_1985" class="mw-redirect" title="CA 1985">CA 1985</a> s 309, requiring directors to act in shareholders and employees' interests, now reflected in <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s 172</span> </li> <li id="cite_note-139"><span class="mw-cite-backlink"><b><a href="#cite_ref-139">^</a></b></span> <span class="reference-text"><a href="/w/index.php?title=Growth_and_Infrastructure_Act_2013&action=edit&redlink=1" class="new" title="Growth and Infrastructure Act 2013 (page does not exist)">Growth and Infrastructure Act 2013</a> s 31, and PJ Purcell, 'The Enron Bankruptcy and Employer Stock in Retirement Plans' (11 March 2002) <a rel="nofollow" class="external text" href="https://fpc.state.gov/documents/organization/9102.pdf">CRS Report for Congress</a></span> </li> <li id="cite_note-140"><span class="mw-cite-backlink"><b><a href="#cite_ref-140">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Re_Hydrodam_(Corby)_Ltd" class="mw-redirect" title="Re Hydrodam (Corby) Ltd">Re Hydrodam (Corby) Ltd</a></i> [1994] BCC 161; CA 2006 s 251; a shadow director is typically a bank or a dominant shareholder, according to whose directions a director is accustomed to act.</span> </li> <li id="cite_note-141"><span class="mw-cite-backlink"><b><a href="#cite_ref-141">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Percival_v_Wright" title="Percival v Wright">Percival v Wright</a></i> [1902] Ch 401, <i><a href="/wiki/Peskin_v_Anderson" title="Peskin v Anderson">Peskin v Anderson</a></i> [2001] 2 BCLC 1 and CA 2006 s 170; directors do not, generally, owe duties to shareholders or any other group directly. But duties may arise in tort, <i><a href="/wiki/Williams_v_Natural_Life_Health_Foods_Ltd" title="Williams v Natural Life Health Foods Ltd">Williams v Natural Life Health Foods Ltd</a></i> [1998] <a rel="nofollow" class="external text" href="https://publications.parliament.uk/pa/ld199798/ldjudgmt/jd980430/williams.htm">1 WLR 830</a>. Also, when approaching insolvency directors may owe duties to creditors, e.g. <i><a href="/w/index.php?title=West_Mercia_Safetywear_Ltd_v_Dodd&action=edit&redlink=1" class="new" title="West Mercia Safetywear Ltd v Dodd (page does not exist)">West Mercia Safetywear Ltd v Dodd</a></i> [1988] BCLC 250 and <i><a href="/wiki/Colin_Gwyer_and_Associates_Ltd_v_London_Wharf_(Limehouse)_Ltd" class="mw-redirect" title="Colin Gwyer and Associates Ltd v London Wharf (Limehouse) Ltd">Colin Gwyer and Associates Ltd v London Wharf (Limehouse) Ltd</a></i> [2003] 2 BCLC 153.</span> </li> <li id="cite_note-142"><span class="mw-cite-backlink"><b><a href="#cite_ref-142">^</a></b></span> <span class="reference-text">CA 2006 ss 232-235; while a director may not have to pay for breach of duties, they will not be able to avoid negative publicity and possibly appearing in court should the insurance company choose to contest the claim.</span> </li> <li id="cite_note-143"><span class="mw-cite-backlink"><b><a href="#cite_ref-143">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/Bishopsgate_Investment_Management_Ltd_v_Maxwell_(No_2)" title="Bishopsgate Investment Management Ltd v Maxwell (No 2)">Bishopsgate Investment Management Ltd v Maxwell (No 2)</a></i> [1993] BCLC 814</span> </li> <li id="cite_note-144"><span class="mw-cite-backlink"><b><a href="#cite_ref-144">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/Hogg_v_Cramphorn_Ltd" title="Hogg v Cramphorn Ltd">Hogg v Cramphorn Ltd</a></i> [1967] Ch 254 and <i><a href="/wiki/Howard_Smith_Ltd_v_Ampol_Ltd" class="mw-redirect" title="Howard Smith Ltd v Ampol Ltd">Howard Smith Ltd v Ampol Ltd</a></i> [1974] AC 832</span> </li> <li id="cite_note-145"><span class="mw-cite-backlink"><b><a href="#cite_ref-145">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/Criterion_Properties_plc_v_Stratford_UK_Properties_LLC" title="Criterion Properties plc v Stratford UK Properties LLC">Criterion Properties plc v Stratford UK Properties LLC</a></i> [2004] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKHL/2004/28.html">UKHL 28</a>; nb the UK <a href="/wiki/Takeover_Code" class="mw-redirect" title="Takeover Code">Takeover Code</a> Rule 21 voids any measure, without shareholder approval, with the effect of frustrating a takeover bid. This is reflected in the <a href="/wiki/Takeover_Directive" title="Takeover Directive">Takeover Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0025:EN:NOT">2004/25/EC</a>, art 9(2).</span> </li> <li id="cite_note-146"><span class="mw-cite-backlink"><b><a href="#cite_ref-146">^</a></b></span> <span class="reference-text">For the old and abandoned approach of the pure subjective standard, see <i><a href="/wiki/Re_Cardiff_Savings_Bank" title="Re Cardiff Savings Bank">Re Cardiff Savings Bank</a></i> [1892] 2 Ch 100; <i><a href="/w/index.php?title=In_re_Brazilian_Rubber_Plantations_and_Estates_Ltd&action=edit&redlink=1" class="new" title="In re Brazilian Rubber Plantations and Estates Ltd (page does not exist)">In re Brazilian Rubber Plantations and Estates Ltd</a></i> [1911] 1 Ch 425; <i><a href="/wiki/Re_City_Equitable_Fire_Insurance_Co" title="Re City Equitable Fire Insurance Co">Re City Equitable Fire Insurance Co</a></i> [1925] Ch 407</span> </li> <li id="cite_note-147"><span class="mw-cite-backlink"><b><a href="#cite_ref-147">^</a></b></span> <span class="reference-text">[1994] 1 BCLC 561</span> </li> <li id="cite_note-148"><span class="mw-cite-backlink"><b><a href="#cite_ref-148">^</a></b></span> <span class="reference-text">See <a href="/wiki/Lord_Hardwicke_LC" class="mw-redirect" title="Lord Hardwicke LC">Lord Hardwicke LC</a> in <i><a href="/wiki/The_Charitable_Corporation_v_Sutton" class="mw-redirect" title="The Charitable Corporation v Sutton">The Charitable Corporation v Sutton</a></i> (1742) 26 ER 642 and <a href="/wiki/Lord_Wilberforce" class="mw-redirect" title="Lord Wilberforce">Lord Wilberforce</a> in <i><a href="/wiki/Howard_Smith_Ltd_v_Ampol_Petroleum_Ltd" title="Howard Smith Ltd v Ampol Petroleum Ltd">Howard Smith Ltd v Ampol Petroleum Ltd</a></i> [1974] AC 821</span> </li> <li id="cite_note-149"><span class="mw-cite-backlink"><b><a href="#cite_ref-149">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Boardman_v_Phipps" title="Boardman v Phipps">Boardman v Phipps</a></i> [1966] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKHL/1966/2.html">UKHL 2</a></span> </li> <li id="cite_note-150"><span class="mw-cite-backlink"><b><a href="#cite_ref-150">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Keech_v_Sandford" title="Keech v Sandford">Keech v Sandford</a></i> (1726) Sel Cas Ch 61, <i><a href="/wiki/Whelpdale_v_Cookson" title="Whelpdale v Cookson">Whelpdale v Cookson</a></i> (1747) 1 Ves Sen 9; 27 ER 856, <i><a href="/wiki/Ex_parte_James" class="mw-redirect" title="Ex parte James">Ex parte James</a></i> [1803-13] All ER Rep 7, <i><a href="/wiki/Parker_v_McKenna" title="Parker v McKenna">Parker v McKenna</a></i> (1874) LR 10 Ch App 96 and <i><a href="/wiki/Bray_v_Ford" title="Bray v Ford">Bray v Ford</a></i> [1896] AC 44</span> </li> <li id="cite_note-151"><span class="mw-cite-backlink"><b><a href="#cite_ref-151">^</a></b></span> <span class="reference-text">[1916] 1 AC 554, <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKPC/1916/1916_10.html">[1916] UKPC 10</a> (PC)</span> </li> <li id="cite_note-152"><span class="mw-cite-backlink"><b><a href="#cite_ref-152">^</a></b></span> <span class="reference-text">[2003] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/2003/424.html">EWCA Civ 424</a></span> </li> <li id="cite_note-153"><span class="mw-cite-backlink"><b><a href="#cite_ref-153">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/Industrial_Development_Consultants_v_Cooley" class="mw-redirect" title="Industrial Development Consultants v Cooley">Industrial Development Consultants v Cooley</a></i> [1972] 1 WLR 443, <i><a href="/wiki/CMS_Dolphin_Ltd_v_Simonet" title="CMS Dolphin Ltd v Simonet">CMS Dolphin Ltd v Simonet</a></i> [2001] 2 BCLC 704, <i><a href="/wiki/In_Plus_Group_Ltd_v_Pyke" title="In Plus Group Ltd v Pyke">In Plus Group Ltd v Pyke</a></i> [2002] EWCA Civ 370, and <i><a href="/wiki/Foster_Bryant_Surveying_Ltd_v_Bryant" title="Foster Bryant Surveying Ltd v Bryant">Foster Bryant Surveying Ltd v Bryant</a></i> [2007] EWCA Civ 200</span> </li> <li id="cite_note-154"><span class="mw-cite-backlink"><b><a href="#cite_ref-154">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Aberdeen_Railway_Co_v_Blaikie_Brothers" class="mw-redirect" title="Aberdeen Railway Co v Blaikie Brothers">Aberdeen Railway Co v Blaikie Brothers</a></i> (1854) 1 Macq HL 461</span> </li> <li id="cite_note-155"><span class="mw-cite-backlink"><b><a href="#cite_ref-155">^</a></b></span> <span class="reference-text">See <a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s 180(1)(b) and <i><a href="/w/index.php?title=Imperial_Mercantile_Credit_Association_v_Coleman&action=edit&redlink=1" class="new" title="Imperial Mercantile Credit Association v Coleman (page does not exist)">Imperial Mercantile Credit Association v Coleman</a></i> (1871) LR 6 Ch App 558, <i><a href="/w/index.php?title=Costa_Rica_Railway_Company_v_Forwood&action=edit&redlink=1" class="new" title="Costa Rica Railway Company v Forwood (page does not exist)">Costa Rica Railway Company v Forwood</a></i> [1901] 1 Ch 746, <i><a href="/w/index.php?title=Motivex_v_Bulfield_Ltd&action=edit&redlink=1" class="new" title="Motivex v Bulfield Ltd (page does not exist)">Motivex v Bulfield Ltd</a></i> [1988] BCLC 104, 117 and <i><a href="/wiki/Boulting_v_ACTAT" class="mw-redirect" title="Boulting v ACTAT">Boulting v ACTAT</a></i> [1963] 2 QB 606, 636</span> </li> <li id="cite_note-156"><span class="mw-cite-backlink"><b><a href="#cite_ref-156">^</a></b></span> <span class="reference-text">CA 2006 ss 182-183</span> </li> <li id="cite_note-157"><span class="mw-cite-backlink"><b><a href="#cite_ref-157">^</a></b></span> <span class="reference-text">Under CA 2006 ss 252-254, a "connected person" includes family members, and companies, partnerships and trusts where the director has a large stake.</span> </li> <li id="cite_note-158"><span class="mw-cite-backlink"><b><a href="#cite_ref-158">^</a></b></span> <span class="reference-text">See CA 2006 ss 197-214</span> </li> <li id="cite_note-159"><span class="mw-cite-backlink"><b><a href="#cite_ref-159">^</a></b></span> <span class="reference-text">e.g. <a href="/wiki/Model_Articles" class="mw-redirect" title="Model Articles">Model Articles</a>, art 22, and cf <i><a href="/wiki/Guinness_plc_v_Saunders" title="Guinness plc v Saunders">Guinness plc v Saunders</a></i> [1990] 2 AC 663</span> </li> <li id="cite_note-160"><span class="mw-cite-backlink"><b><a href="#cite_ref-160">^</a></b></span> <span class="reference-text">cf <a href="/wiki/CA_1985" class="mw-redirect" title="CA 1985">CA 1985</a> s 309, which stipulated that shareholders and employees interests had to be considered. No cases were ever brought under this provision. Older cases such as <i><a href="/wiki/Hutton_v_West_Cork_Railway_Co" class="mw-redirect" title="Hutton v West Cork Railway Co">Hutton v West Cork Railway Co</a></i> (1883) 23 Ch D 654 and <i><a href="/w/index.php?title=Parke_v_Daily_News_Ltd&action=edit&redlink=1" class="new" title="Parke v Daily News Ltd (page does not exist)">Parke v Daily News Ltd</a></i> [1962] Ch 927 suggested directors of insolvent companies could not protect employees, though this had been reversed by statute, IA 1986 s 187 and CA 2006 s 247 (Power to make provision for employees on cessation or transfer of business)</span> </li> <li id="cite_note-161"><span class="mw-cite-backlink"><b><a href="#cite_ref-161">^</a></b></span> <span class="reference-text">CA 2006 s 172(1)(a)-(f)</span> </li> <li id="cite_note-162"><span class="mw-cite-backlink"><b><a href="#cite_ref-162">^</a></b></span> <span class="reference-text">CA 2006 s 172(3)</span> </li> <li id="cite_note-163"><span class="mw-cite-backlink"><b><a href="#cite_ref-163">^</a></b></span> <span class="reference-text">CA 2006 s 172(1)</span> </li> <li id="cite_note-164"><span class="mw-cite-backlink"><b><a href="#cite_ref-164">^</a></b></span> <span class="reference-text">cf <i><a href="/w/index.php?title=Regentcrest_plc_v_Cohen&action=edit&redlink=1" class="new" title="Regentcrest plc v Cohen (page does not exist)">Regentcrest plc v Cohen</a></i> [2001] 2 BCLC 80</span> </li> <li id="cite_note-165"><span class="mw-cite-backlink"><b><a href="#cite_ref-165">^</a></b></span> <span class="reference-text">CA 2006 s 419</span> </li> <li id="cite_note-166"><span class="mw-cite-backlink"><b><a href="#cite_ref-166">^</a></b></span> <span class="reference-text">(1812) 1 Ves & B 154, 158</span> </li> <li id="cite_note-167"><span class="mw-cite-backlink"><b><a href="#cite_ref-167">^</a></b></span> <span class="reference-text">e.g. <a href="/wiki/Model_Articles" class="mw-redirect" title="Model Articles">Model Articles</a>, art 3</span> </li> <li id="cite_note-168"><span class="mw-cite-backlink"><b><a href="#cite_ref-168">^</a></b></span> <span class="reference-text">(1843) 67 ER 189</span> </li> <li id="cite_note-169"><span class="mw-cite-backlink"><b><a href="#cite_ref-169">^</a></b></span> <span class="reference-text">cf <i><a href="/w/index.php?title=Alexander_Ward_v_Samyang&action=edit&redlink=1" class="new" title="Alexander Ward v Samyang (page does not exist)">Alexander Ward v Samyang</a></i> [1975] 2 All ER 424 and <i><a href="/w/index.php?title=Breckland_Group_Holdings_Ltd_v_London_%26_Suffolk_Properties_Ltd&action=edit&redlink=1" class="new" title="Breckland Group Holdings Ltd v London & Suffolk Properties Ltd (page does not exist)">Breckland Group Holdings Ltd v London & Suffolk Properties Ltd</a></i> [1989] BCLC 100</span> </li> <li id="cite_note-170"><span class="mw-cite-backlink"><b><a href="#cite_ref-170">^</a></b></span> <span class="reference-text">For highly instructive comparison in the US, see <i><a href="/wiki/Joy_v_North" class="mw-redirect" title="Joy v North">Joy v North</a></i>, 692 F 2d 880 (1981). Another model for a derivative claim in the German <a href="/wiki/Aktiengesetz" class="mw-redirect" title="Aktiengesetz">Aktiengesetz</a> <a rel="nofollow" class="external text" href="http://www.gesetze-im-internet.de/aktg/__148.html">§ 148</a>, whereby 1% of shareholders, or those holding at least €100,000 in shares, can bring a claim.</span> </li> <li id="cite_note-171"><span class="mw-cite-backlink"><b><a href="#cite_ref-171">^</a></b></span> <span class="reference-text">See CA 2006 s 239, stipulating that a breach of duty can only be ratified by disinterested shareholders. It also appears that disinterested shareholders would not, however, be competent to ratify fraudulent behaviour, contrary to public policy.</span> </li> <li id="cite_note-172"><span class="mw-cite-backlink"><b><a href="#cite_ref-172">^</a></b></span> <span class="reference-text">CA 2006 s 263(3)</span> </li> <li id="cite_note-173"><span class="mw-cite-backlink"><b><a href="#cite_ref-173">^</a></b></span> <span class="reference-text">CA 2006 s 263(4), and see <i><a href="/wiki/Smith_v_Croft_(No_2)" title="Smith v Croft (No 2)">Smith v Croft (No 2)</a></i> [1988] Ch 114</span> </li> <li id="cite_note-174"><span class="mw-cite-backlink"><b><a href="#cite_ref-174">^</a></b></span> <span class="reference-text">The pre-2006 case law may still be indicative of the present law, however since according to CA 2006 s 260(2) a claim can only be brought "under this Chapter", the sole rules for derivative actions are contained in ss 260-264.</span> </li> <li id="cite_note-175"><span class="mw-cite-backlink"><b><a href="#cite_ref-175">^</a></b></span> <span class="reference-text">e.g. <i><a href="/w/index.php?title=Mission_Capital_plc_v_Sinclair&action=edit&redlink=1" class="new" title="Mission Capital plc v Sinclair (page does not exist)">Mission Capital plc v Sinclair</a></i> [2008] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWHC/Ch/2008/1339.html">EWHC 1339 (Ch)</a> and <i><a href="/w/index.php?title=Franbar_Holdings_Ltd_v_Patel&action=edit&redlink=1" class="new" title="Franbar Holdings Ltd v Patel (page does not exist)">Franbar Holdings Ltd v Patel</a></i> [2008] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWHC/Ch/2008/1534.html">EWHC 1534 (Ch)</a></span> </li> <li id="cite_note-176"><span class="mw-cite-backlink"><b><a href="#cite_ref-176">^</a></b></span> <span class="reference-text">[1975] QB 373</span> </li> <li id="cite_note-177"><span class="mw-cite-backlink"><b><a href="#cite_ref-177">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/Pender_v_Lushington" title="Pender v Lushington">Pender v Lushington</a></i> (1877) 6 Ch D 70, cf <i><a href="/w/index.php?title=Macdougall_v_Gardiner&action=edit&redlink=1" class="new" title="Macdougall v Gardiner (page does not exist)">Macdougall v Gardiner</a></i> (1875) 1 Ch D 13</span> </li> <li id="cite_note-178"><span class="mw-cite-backlink"><b><a href="#cite_ref-178">^</a></b></span> <span class="reference-text">See <i><a href="/w/index.php?title=Prudential_Assurance_v_Newman_Industries_Ltd&action=edit&redlink=1" class="new" title="Prudential Assurance v Newman Industries Ltd (page does not exist)">Prudential Assurance v Newman Industries Ltd</a></i> [1982] Ch 204. The duty to not mislead arises from the law of tort, and <a href="/wiki/Negligent_misstatement" class="mw-redirect" title="Negligent misstatement">negligent misstatement</a>.</span> </li> <li id="cite_note-179"><span class="mw-cite-backlink"><b><a href="#cite_ref-179">^</a></b></span> <span class="reference-text">See further, <i><a href="/wiki/Johnson_v_Gore_Wood_%26_Co" title="Johnson v Gore Wood & Co">Johnson v Gore Wood & Co</a></i> [2002] 2 AC 1, <i><a href="/w/index.php?title=Giles_v_Rhind&action=edit&redlink=1" class="new" title="Giles v Rhind (page does not exist)">Giles v Rhind</a></i> [2002] EWCA Civ 1428, <i><a href="/w/index.php?title=Gardner_v_Parker&action=edit&redlink=1" class="new" title="Gardner v Parker (page does not exist)">Gardner v Parker</a></i> [2004] 2 BCLC 554</span> </li> <li id="cite_note-180"><span class="mw-cite-backlink"><b><a href="#cite_ref-180">^</a></b></span> <span class="reference-text">[1900] 1 Ch 656</span> </li> <li id="cite_note-181"><span class="mw-cite-backlink"><b><a href="#cite_ref-181">^</a></b></span> <span class="reference-text">[1951] Ch 286</span> </li> <li id="cite_note-182"><span class="mw-cite-backlink"><b><a href="#cite_ref-182">^</a></b></span> <span class="reference-text">See also, <i><a href="/wiki/Brown_v_British_Abrasive_Wheel_Co" title="Brown v British Abrasive Wheel Co">Brown v British Abrasive Wheel Co</a></i> [1919] 1 Ch 290, <i><a href="/wiki/Sidebottom_v_Kershaw,_Leese_%26_Co_Ltd" title="Sidebottom v Kershaw, Leese & Co Ltd">Sidebottom v Kershaw, Leese & Co Ltd</a></i> [1920] 1 Ch 154, <i><a href="/wiki/Dafen_Tinplate_Co_Ltd_v_Llanelly_Steel_Co_(1907)_Ltd" title="Dafen Tinplate Co Ltd v Llanelly Steel Co (1907) Ltd">Dafen Tinplate Co Ltd v Llanelly Steel Co (1907) Ltd</a></i> [1920] 2 Ch 124, <i><a href="/wiki/Shuttleworth_v_Cox_Bros_and_Co_(Maidenhead)" class="mw-redirect" title="Shuttleworth v Cox Bros and Co (Maidenhead)">Shuttleworth v Cox Bros and Co (Maidenhead)</a></i> [1927] 1 Ch 154, <i><a href="/wiki/Southern_Foundries_(1926)_Ltd_v_Shirlaw" title="Southern Foundries (1926) Ltd v Shirlaw">Southern Foundries (1926) Ltd v Shirlaw</a></i> [1940] AC 701 and <i><a href="/wiki/Citco_Banking_Corporation_NV_v_Pusser%27s_Ltd" title="Citco Banking Corporation NV v Pusser's Ltd">Citco Banking Corporation NV v Pusser's Ltd</a></i> [2007] UKPC 13</span> </li> <li id="cite_note-183"><span class="mw-cite-backlink"><b><a href="#cite_ref-183">^</a></b></span> <span class="reference-text">[1973] AC 360</span> </li> <li id="cite_note-184"><span class="mw-cite-backlink"><b><a href="#cite_ref-184">^</a></b></span> <span class="reference-text">[1999] 1 WLR 1092</span> </li> <li id="cite_note-185"><span class="mw-cite-backlink"><b><a href="#cite_ref-185">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Re_Blue_Arrow_plc" title="Re Blue Arrow plc">Re Blue Arrow plc</a></i> [1987] BCLC 585</span> </li> <li id="cite_note-186"><span class="mw-cite-backlink"><b><a href="#cite_ref-186">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/Bhullar_v_Bhullar" title="Bhullar v Bhullar">Bhullar v Bhullar</a></i> [2003] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/2003/424.html">EWCA Civ 424</a></span> </li> <li id="cite_note-187"><span class="mw-cite-backlink"><b><a href="#cite_ref-187">^</a></b></span> <span class="reference-text">e.g. <i><a href="/wiki/O%27Donnell_v_Shanahan" title="O'Donnell v Shanahan">O'Donnell v Shanahan</a></i> [2009] <a rel="nofollow" class="external text" href="http://www.bailii.org/ew/cases/EWCA/Civ/2009/751.html">EWCA Civ 751</a></span> </li> <li id="cite_note-188"><span class="mw-cite-backlink"><b><a href="#cite_ref-188">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Borland%27s_Trustee_v_Steel_Bros_%26_Co_Ltd" title="Borland's Trustee v Steel Bros & Co Ltd">Borland's Trustee v Steel Brothers & Co Ltd</a></i> [1901] 1 Ch 279</span> </li> <li id="cite_note-189"><span class="mw-cite-backlink"><b><a href="#cite_ref-189">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Attorney_General_of_Belize_v_Belize_Telecom_Ltd" title="Attorney General of Belize v Belize Telecom Ltd">Attorney General of Belize v Belize Telecom Ltd</a></i> [2009] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKPC/2009/10.html">UKPC 10</a></span> </li> <li id="cite_note-190"><span class="mw-cite-backlink"><b><a href="#cite_ref-190">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Birch_v_Cropper" title="Birch v Cropper">Birch v Cropper</a></i> (1889) 14 App Cas 525, preferential shareholders presumed to be entitled to distribution on winding up like other shareholders, as constitution did not say otherwise. <i><a href="/w/index.php?title=Alliance_Perpetual_Building_Society_v_Clifton&action=edit&redlink=1" class="new" title="Alliance Perpetual Building Society v Clifton (page does not exist)">Alliance Perpetual Building Society v Clifton</a></i> [1962] 1 WLR 1270, whether shares are ordinary or preference shares.</span> </li> <li id="cite_note-191"><span class="mw-cite-backlink"><b><a href="#cite_ref-191">^</a></b></span> <span class="reference-text">[1949] <a rel="nofollow" class="external text" href="http://www.bailii.org/uk/cases/UKHL/1949/1949_SC_HL_90.html">UKHL 3</a></span> </li> <li id="cite_note-192"><span class="mw-cite-backlink"><b><a href="#cite_ref-192">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Borland%27s_Trustee_v_Steel_Bros_%26_Co_Ltd" title="Borland's Trustee v Steel Bros & Co Ltd">Borland's Trustee v Steel Brothers & Co Ltd</a></i> [1901] 1 Ch 279, per Farwell J, 'A share is the interest of a shareholder in the company measured by a sum of money, for the purpose of liability in the first place, and of interest in the second, but also consisting of a series of mutual covenants entered into by all the shareholders inter se in accordance with s 16 of the Companies Act, 1862. The contract contained in the articles of association is one of the original incidents of the share.'</span> </li> <li id="cite_note-193"><span class="mw-cite-backlink"><b><a href="#cite_ref-193">^</a></b></span> <span class="reference-text">cf <a href="/wiki/CMAR_2008" class="mw-redirect" title="CMAR 2008">CMAR 2008</a> Sch 1 para 22 and Sch 3 para 43</span> </li> <li id="cite_note-194"><span class="mw-cite-backlink"><b><a href="#cite_ref-194">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss <a rel="nofollow" class="external text" href="http://www.legislation.gov.uk/ukpga/2006/46/part/8">112-113</a></span> </li> <li id="cite_note-195"><span class="mw-cite-backlink"><b><a href="#cite_ref-195">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s 779, by having a warrant, entitling a holder to shares on delivery, or a letter of allotment, but not yet being on the register.</span> </li> <li id="cite_note-196"><span class="mw-cite-backlink"><b><a href="#cite_ref-196">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s 284, one share gets one vote, subject to the articles</span> </li> <li id="cite_note-197"><span class="mw-cite-backlink"><b><a href="#cite_ref-197">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s 544</span> </li> <li id="cite_note-198"><span class="mw-cite-backlink"><b><a href="#cite_ref-198">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss 112-114</span> </li> <li id="cite_note-199"><span class="mw-cite-backlink"><b><a href="#cite_ref-199">^</a></b></span> <span class="reference-text">CMAR 2008 Schs 1 and 3 para 3</span> </li> <li id="cite_note-200"><span class="mw-cite-backlink"><b><a href="#cite_ref-200">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> ss 549-551</span> </li> <li id="cite_note-201"><span class="mw-cite-backlink"><b><a href="#cite_ref-201">^</a></b></span> <span class="reference-text"><a href="/wiki/CA_2006" class="mw-redirect" title="CA 2006">CA 2006</a> s 562(5)</span> </li> <li id="cite_note-202"><span class="mw-cite-backlink"><b><a href="#cite_ref-202">^</a></b></span> <span class="reference-text">See also <a href="/wiki/Paul_Myners" class="mw-redirect" title="Paul Myners">Paul Myners</a>, <i>Pre-Emption Rights: Final Report</i> (2005) DTI, <a rel="nofollow" class="external text" href="http://www.berr.gov.uk/files/file28436.pdf">.pdf</a></span> </li> <li id="cite_note-203"><span class="mw-cite-backlink"><b><a href="#cite_ref-203">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFTreanor2010" class="citation news cs1">Treanor, Jill (23 March 2010). <a rel="nofollow" class="external text" href="https://www.theguardian.com/business/2010/mar/23/six-arrested-over-insider-dealing">"Six arrested over City insider dealing"</a>. <i>The Guardian</i> – via www.theguardian.com.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=The+Guardian&rft.atitle=Six+arrested+over+City+insider+dealing&rft.date=2010-03-23&rft.aulast=Treanor&rft.aufirst=Jill&rft_id=https%3A%2F%2Fwww.theguardian.com%2Fbusiness%2F2010%2Fmar%2F23%2Fsix-arrested-over-insider-dealing&rfr_id=info%3Asid%2Fen.wikipedia.org%3AUnited+Kingdom+company+law" class="Z3988"></span></span> </li> <li id="cite_note-204"><span class="mw-cite-backlink"><b><a href="#cite_ref-204">^</a></b></span> <span class="reference-text">For an historical overview of the <a href="/wiki/Takeover_Panel" class="mw-redirect" title="Takeover Panel">Takeover Panel</a>'s background and the non-frustration principle, see J Armour and DA Skeel Jr., 'Who Writes the Rules for Hostile Takeovers, and Why? – The Peculiar Divergence of US and UK Takeover Regulation' (2007) 95 Georgetown Law Journal 1727</span> </li> <li id="cite_note-205"><span class="mw-cite-backlink"><b><a href="#cite_ref-205">^</a></b></span> <span class="reference-text">See <i><a href="/wiki/Cheff_v._Mathes" title="Cheff v. Mathes">Cheff v. Mathes</a></i>, 41 Del. Ch. 494, 199 <a href="/wiki/Atlantic_Reporter" title="Atlantic Reporter">A.2d</a> 548 (S. Ct. 1964), <i><a href="/wiki/Unocal_Corp._v._Mesa_Petroleum_Co." title="Unocal Corp. v. Mesa Petroleum Co.">Unocal Corp. v. Mesa Petroleum Co.</a></i> 493 A.2d 946 (Del. 1985) and <i><a href="/wiki/Paramount_Communications,_Inc._v._Time_Incorporated" class="mw-redirect" title="Paramount Communications, Inc. v. Time Incorporated">Paramount Communications, Inc. v. Time Incorporated</a></i>, Fed. Sec. L. Rep. (<a href="/wiki/CCH_(company)" title="CCH (company)">CCH</a>) ¶ 94,514; aff'd 571 A.2d 1140 (Del. 1989)</span> </li> <li id="cite_note-206"><span class="mw-cite-backlink"><b><a href="#cite_ref-206">^</a></b></span> <span class="reference-text">See <a href="/wiki/DGCL" class="mw-redirect" title="DGCL">DGCL</a> §141(k)</span> </li> <li id="cite_note-207"><span class="mw-cite-backlink"><b><a href="#cite_ref-207">^</a></b></span> <span class="reference-text"><a href="/wiki/Takeover_Directive" title="Takeover Directive">Takeover Directive</a> <a rel="nofollow" class="external text" href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0025:EN:NOT">2004/25/EC</a> arts 9(2) and 12</span> </li> <li id="cite_note-208"><span class="mw-cite-backlink"><b><a href="#cite_ref-208">^</a></b></span> <span class="reference-text">See L Lucas and A Rappeport, 'Mergers and acquisitions: A bitter taste' (23 May 2011) <a rel="nofollow" class="external text" href="https://www.ft.com/cms/s/0/03559624-8571-11e0-ae32-00144feabdc0.html#axzz1T189zwV5">Financial Times</a>. When Kraft broke public promises to keep 500 jobs in the Somerdale plant it was criticsed by the Takeover Panel.</span> </li> <li id="cite_note-209"><span class="mw-cite-backlink"><b><a href="#cite_ref-209">^</a></b></span> <span class="reference-text">See <i><a href="/w/index.php?title=Gething_v_Kilner&action=edit&redlink=1" class="new" title="Gething v Kilner (page does not exist)">Gething v Kilner</a></i> [1972] 1 All ER 1166</span> </li> <li id="cite_note-210"><span class="mw-cite-backlink"><b><a href="#cite_ref-210">^</a></b></span> <span class="reference-text"><i><a href="/w/index.php?title=Re_a_Company_No._008699_of_1985&action=edit&redlink=1" class="new" title="Re a Company No. 008699 of 1985 (page does not exist)">Re a Company No. 008699 of 1985</a></i> [1986] BCLC 383</span> </li> <li id="cite_note-211"><span class="mw-cite-backlink"><b><a href="#cite_ref-211">^</a></b></span> <span class="reference-text">[1967] Ch 254</span> </li> <li id="cite_note-212"><span class="mw-cite-backlink"><b><a href="#cite_ref-212">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Howard_Smith_Ltd_v_Ampol_Petroleum_Ltd" title="Howard Smith Ltd v Ampol Petroleum Ltd">Howard Smith Ltd v Ampol Petroleum Ltd</a></i> [1974] AC 821, per <a href="/wiki/Lord_Wilberforce" class="mw-redirect" title="Lord Wilberforce">Lord Wilberforce</a></span> </li> <li id="cite_note-213"><span class="mw-cite-backlink"><b><a href="#cite_ref-213">^</a></b></span> <span class="reference-text"><a href="/wiki/ERA_1996" class="mw-redirect" title="ERA 1996">ERA 1996</a> ss 86, 94 and 135</span> </li> <li id="cite_note-214"><span class="mw-cite-backlink"><b><a href="#cite_ref-214">^</a></b></span> <span class="reference-text"><a href="/wiki/TUPER_2006" class="mw-redirect" title="TUPER 2006">TUPER 2006</a> <a rel="nofollow" class="external text" href="http://www.opsi.gov.uk/si/si2006/20060246.htm">SI 2006/246</a></span> </li> <li id="cite_note-215"><span class="mw-cite-backlink"><b><a href="#cite_ref-215">^</a></b></span> <span class="reference-text"><i><a href="/w/index.php?title=Re_Grierson_Oldham_and_Adams_Ltd&action=edit&redlink=1" class="new" title="Re Grierson Oldham and Adams Ltd (page does not exist)">Re Grierson Oldham and Adams Ltd</a></i> [1968] Ch 17</span> </li> <li id="cite_note-216"><span class="mw-cite-backlink"><b><a href="#cite_ref-216">^</a></b></span> <span class="reference-text"><i><a href="/w/index.php?title=Re_Bugle_Press_Ltd&action=edit&redlink=1" class="new" title="Re Bugle Press Ltd (page does not exist)">Re Bugle Press Ltd</a></i> [1961] Ch 270</span> </li> <li id="cite_note-217"><span class="mw-cite-backlink"><b><a href="#cite_ref-217">^</a></b></span> <span class="reference-text"><i><a href="/w/index.php?title=Fiske_Nominees_Ltd_v_Dwyka_Diamond_Ltd&action=edit&redlink=1" class="new" title="Fiske Nominees Ltd v Dwyka Diamond Ltd (page does not exist)">Fiske Nominees Ltd v Dwyka Diamond Ltd</a></i> [2002] EWHC 770; 2 BCLC 123</span> </li> <li id="cite_note-218"><span class="mw-cite-backlink"><b><a href="#cite_ref-218">^</a></b></span> <span class="reference-text">[1987] QB 815</span> </li> <li id="cite_note-219"><span class="mw-cite-backlink"><b><a href="#cite_ref-219">^</a></b></span> <span class="reference-text"><i><a href="/w/index.php?title=Ex_parte_Guinness_plc&action=edit&redlink=1" class="new" title="Ex parte Guinness plc (page does not exist)">ex parte Guinness plc</a></i> [1990] 1 QB 146, the Panel was found to be 'insensitive and unwise' no action. Also, <i><a href="/w/index.php?title=Ex_parte_Fayed&action=edit&redlink=1" class="new" title="Ex parte Fayed (page does not exist)">ex parte Fayed</a></i> [1992] BCLC 938</span> </li> </ol></div></div> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=26" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><b>Textbooks</b> </p> <ul><li><a href="/wiki/PL_Davies" class="mw-redirect" title="PL Davies">PL Davies</a>, <i>Gower's Modern Company Law</i> (8th edn Sweet and Maxwell, London 2008)</li> <li>D Kershaw, <i>Company Law in Context</i> (<a href="/wiki/OUP" class="mw-redirect" title="OUP">OUP</a>, Oxford 2009)</li> <li>R Kraakman, J Armour, <a href="/wiki/PL_Davies" class="mw-redirect" title="PL Davies">PL Davies</a>, L Enriques, H Hansmann, G Hertig, K Hopt, H Kanda and E Rock, <i>The Anatomy of Corporate Law</i> (2nd edn <a href="/wiki/OUP" class="mw-redirect" title="OUP">OUP</a> 2009)</li> <li>John Lowry and Alan Dignam, <i>Company Law</i> (11th edn OUP 2020) <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0-19-928936-3" title="Special:BookSources/978-0-19-928936-3">978-0-19-928936-3</a></li> <li>L Sealy and S Worthington, <i>Cases and Materials in Company law</i> (9th edn OUP, Oxford 2010)</li> <li>AF Topham, <i>Principles of Company Law</i> (1978)</li></ul> <p><b>Treatises</b> </p> <ul><li><a href="/wiki/AA_Berle" class="mw-redirect" title="AA Berle">AA Berle</a> and GC Means, <i><a href="/wiki/The_Modern_Corporation_and_Private_Property" title="The Modern Corporation and Private Property">The Modern Corporation and Private Property</a></i> (1932)</li> <li>B Cheffins, <i>Company law: Theory, Structure and Operation</i> (1998)</li> <li>J Micklethwait and A Wooldridge <i>The company: A short history of a revolutionary idea</i> (Modern Library 2003)</li> <li><a href="/wiki/JE_Parkinson" class="mw-redirect" title="JE Parkinson">JE Parkinson</a>, <i><a href="/wiki/Corporate_Power_and_Responsibility" title="Corporate Power and Responsibility">Corporate Power and Responsibility</a>: Issues in the Theory of Company Law</i> (Clarendon 1995)</li></ul> <p><b>Articles</b> </p> <ul><li><a href="/wiki/AA_Berle" class="mw-redirect" title="AA Berle">AA Berle</a>, 'The Theory of Enterprise Entity' (1947) 47(3) Columbia Law Review 343</li> <li>BS Black and <a href="/wiki/JC_Coffee" class="mw-redirect" title="JC Coffee">JC Coffee</a>, 'Hail Britannia?: Institutional Investor Behavior Under Limited Regulation' (1994) <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=276991">92 Michigan Law Review 1997-2087</a></li> <li><a href="/wiki/PL_Davies" class="mw-redirect" title="PL Davies">PL Davies</a>, E Schuster and E Van de Walle de Ghelcke, 'The Takeover Directive as a Protectionist Tool?' (2010) <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=1554616">EGCI Working Paper</a></li> <li><a href="/wiki/PL_Davies" class="mw-redirect" title="PL Davies">PL Davies</a>, 'Workers on the Board of the European Company?' (2003) <a rel="nofollow" class="external text" href="https://archive.today/20120709193446/http://ilj.oxfordjournals.org/cgi/content/short/32/2/75">32(2) Industrial Law Journal 75</a></li> <li>EM Dodd, 'Book Review' (1945) 58 Harvard Law Review 1258</li> <li>A Garrett, 'A Comparison of United States and United Kingdom Approaches to Board Structure' (2007) 3 The Corporate Governance Law Review 93</li> <li>R Grantham, 'The Doctrinal Basis of Company Law' (1998) 57 Cambridge Law Journal 554</li> <li>P Ireland, 'Company Law and the Myth of Shareholder Ownership' (1999) 62 <a href="/wiki/Modern_Law_Review" title="Modern Law Review">Modern Law Review</a> 32</li> <li>D Kershaw, 'No End in Sight for the History of Corporate Law: The Case of Employee Participation in Corporate Governance' (2002) 2 Journal of Corporate Law Studies 34</li> <li>D Kershaw, 'The Illusion of Importance: Reconsidering the UK's Takeover Defence Prohibition' (2007) <a rel="nofollow" class="external text" href="http://journals.cambridge.org/production/action/cjoGetFulltext?fulltextid=1535604">56 ICLQ 267</a></li> <li>E McGaughey, 'Does Corporate Governance Exclude the Ultimate Investor?' (2016) <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=2666955">16(1) Journal of Corporate Law Studies 221</a></li> <li>E McGaughey, 'Ideals of the Corporation and the Nexus of Contracts' (2015) <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=2699543">78(6) Modern Law Review 1057</a></li> <li>E McGaughey, 'Donoghue v Salomon in the High Court' (2011) 4 Journal of Personal Injury Law 249, on <a rel="nofollow" class="external text" href="https://ssrn.com/abstract=2237965">SSRN</a></li> <li><a href="/wiki/C_Mitchell" class="mw-redirect" title="C Mitchell">C Mitchell</a>, 'Lifting the Corporate Veil in the English Courts: An Empirical Study' (1999) 3 Company, Financial and Insolvency Law Review 15</li> <li><a href="/wiki/KW_Wedderburn" class="mw-redirect" title="KW Wedderburn">KW Wedderburn</a>, 'Shareholders' rights and the rule in Foss v Harbottle' (1957) <a rel="nofollow" class="external text" href="http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=2928036">16 Cambridge Law Journal 194</a></li> <li><a href="/wiki/KW_Wedderburn" class="mw-redirect" title="KW Wedderburn">KW Wedderburn</a>, 'Companies and employees: common law or social dimension' (1993) 109 Law Quarterly Review 261</li> <li><a href="/wiki/KW_Wedderburn" class="mw-redirect" title="KW Wedderburn">KW Wedderburn</a>, 'Employees, Partnership and Company Law' [2002] 31(2) Industrial Law Journal 99</li></ul> <p><b>Reports</b> </p> <ul><li>Wrenbury Committee, <i>Report of the Company Law Amendment Committee</i> (1918) <a rel="nofollow" class="external autonumber" href="http://www.takeovers.gov.au/content/Resources/other_resources/downloads/wrenbury_committee.pdf">[1]</a></li> <li><a href="/wiki/Greene_Committee" class="mw-redirect" title="Greene Committee">Greene Committee</a>, <i>Report of the Company Law Amendment Committee</i> (1926) <a rel="nofollow" class="external text" href="http://www.takeovers.gov.au/content/Resources/other_resources/Greene_Committee.aspx">Cmnd 2657</a></li> <li><a href="/wiki/Cohen_Committee" class="mw-redirect" title="Cohen Committee">Cohen Committee</a>, <i>Report of the Committee on Company Law Amendment</i> (1945) <a rel="nofollow" class="external text" href="http://www.takeovers.gov.au/content/Resources/other_resources/Cohen_Committee.aspx">Cm 6659</a></li> <li><a href="/wiki/Jenkins_Committee" class="mw-redirect" title="Jenkins Committee">Jenkins Committee</a>, <i>Report of the Company Law Committee</i> (1962) <a rel="nofollow" class="external text" href="http://www.takeovers.gov.au/content/Resources/other_resources/downloads/jenkins_committee.pdf">Cmnd 1749</a></li> <li>Bullock Committee, <i><a href="/wiki/Report_of_the_committee_of_inquiry_on_industrial_democracy" title="Report of the committee of inquiry on industrial democracy">Report of the committee of inquiry on industrial democracy</a></i> (1977) Cmnd 6706</li> <li>Cork Committee, <i><a href="/wiki/Insolvency_Law_and_Practice,_Report_of_the_Review_Committee" class="mw-redirect" title="Insolvency Law and Practice, Report of the Review Committee">Insolvency Law and Practice, Report of the Review Committee</a></i> (1982) Cmnd 8558</li> <li>Law Commission, <i>Shareholder Remedies</i> (1997) Law Com No 246</li></ul> <div class="mw-heading mw-heading2"><h2 id="External_links">External links</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=United_Kingdom_company_law&action=edit&section=27" title="Edit section: External links"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a rel="nofollow" class="external text" href="http://www.opsi.gov.uk/acts/acts2006a.htm">Companies Act 2006</a></li> <li><a rel="nofollow" class="external text" href="http://www.opsi.gov.uk/acts/acts2006/ukpga_20060046_en.pdf">Companies Act 2006 PDF</a></li> <li><a rel="nofollow" class="external text" href="http://www.companieshouse.org.uk">Companies House</a></li> <li><a rel="nofollow" class="external text" href="http://bis.ecgroup.net/Publications/BusinessLaw/CorporateGovernance.aspx">Department of Business corporate governance homepage</a></li> <li><a rel="nofollow" class="external text" href="http://corporatelawandgovernance.blogspot.com/">Corporate Law and Governance</a>, a UK company law blog</li> <li><a rel="nofollow" class="external text" href="http://corpgov.net/">corpgov.net</a>, a US corporate law blog</li></ul> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Law_of_the_United_Kingdom" style="padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:UK_law" title="Template:UK law"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:UK_law" title="Template talk:UK law"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:UK_law" title="Special:EditPage/Template:UK law"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Law_of_the_United_Kingdom" style="font-size:114%;margin:0 4em"><a href="/wiki/Law_of_the_United_Kingdom" title="Law of the United Kingdom">Law of the United Kingdom</a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%">Common fields</th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Parliamentary_sovereignty_in_the_United_Kingdom" title="Parliamentary sovereignty in the United Kingdom">Parliamentary sovereignty</a></li> <li><a href="/wiki/Constitution_of_the_United_Kingdom" title="Constitution of the United Kingdom">Constitutional law</a></li> <li><a href="/wiki/English_law" title="English law">English law</a></li> <li><a href="/wiki/Law_of_Northern_Ireland" title="Law of Northern Ireland">Law of Northern Ireland</a></li> <li><a href="/wiki/Scots_law" title="Scots law">Scots law</a></li> <li><a href="/wiki/Welsh_law" title="Welsh law">Welsh law</a></li> <li><a href="/wiki/Civil_liberties_in_the_United_Kingdom" title="Civil liberties in the United Kingdom">Civil liberties</a></li> <li><a class="mw-selflink selflink">Company</a> and <a href="/wiki/United_Kingdom_insolvency_law" title="United Kingdom insolvency law">insolvency law</a></li> <li><a href="/wiki/United_Kingdom_competition_law" title="United Kingdom competition law">Competition law</a></li> <li><a href="/wiki/United_Kingdom_labour_law" title="United Kingdom labour law">Labour law</a></li> <li><a href="/wiki/United_Kingdom_commercial_law" title="United Kingdom commercial law">Commercial law</a></li> <li><a href="/wiki/Retained_EU_law" class="mw-redirect" title="Retained EU law">Retained EU law</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Parallel fields</th><td class="navbox-list-with-group navbox-list navbox-even hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Delict_(Scots_law)" title="Delict (Scots law)">Scots delict</a> and <a href="/wiki/English_tort_law" title="English tort law">English tort law</a></li> <li><a href="/wiki/Scots_contract_law" title="Scots contract law">Scots</a> and <a href="/wiki/English_contract_law" title="English contract law">English contract law</a></li> <li><a href="/wiki/Scots_property_law" title="Scots property law">Scots</a> and <a href="/wiki/English_land_law" title="English land law">English land law</a></li> <li><a href="/wiki/English_trust_law" title="English trust law">Trusts</a></li> <li><a href="/wiki/Scots_administrative_law" title="Scots administrative law">Scots</a> and <a href="/wiki/United_Kingdom_administrative_law" title="United Kingdom administrative law">English administrative law</a></li> <li><a href="/wiki/Scottish_criminal_law" title="Scottish criminal law">Scots</a> and <a href="/wiki/English_criminal_law" title="English criminal law">English criminal law</a></li> <li><a href="/wiki/Scots_family_law" title="Scots family law">Scots</a> and <a href="/wiki/English_family_law" title="English family law">English family law</a></li> <li><a href="/wiki/Scots_civil_procedure" title="Scots civil procedure">Scots</a> and <a href="/wiki/Civil_Procedure_Rules" title="Civil Procedure Rules">English civil procedure</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Related systems</th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Law_of_the_British_Virgin_Islands" title="Law of the British Virgin Islands">British Virgin Islands</a></li> <li><a href="/wiki/Australian_legal_system" title="Australian legal system">Australia</a></li> <li><a href="/wiki/Law_of_Canada" title="Law of Canada">Canada</a></li> <li><a href="/wiki/European_Union_law" class="mw-redirect" title="European Union law">European Union</a></li> <li><a href="/wiki/Law_of_Hong_Kong" title="Law of Hong Kong">Hong Kong</a></li> <li><a href="/wiki/Law_of_India" title="Law of India">India</a></li> <li><a href="/wiki/Law_of_the_Republic_of_Ireland" title="Law of the Republic of Ireland">Ireland</a></li> <li><a href="/wiki/Law_of_New_Zealand" title="Law of New Zealand">New Zealand</a></li> <li><a href="/wiki/Law_of_the_United_States" title="Law of the United States">United States</a></li> <li><a href="/wiki/Anglo-Saxon_law" title="Anglo-Saxon law">Anglo-Saxon law</a></li> <li><a href="/wiki/Common_law" title="Common law">Common law</a></li> <li><a href="/wiki/Equity_(law)" title="Equity (law)">Equity</a></li> <li><a href="/wiki/Category:English_case_law" title="Category:English case law">English case law</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">See also</th><td class="navbox-list-with-group navbox-list navbox-even hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Legal_services_in_the_United_Kingdom" title="Legal services in the United Kingdom">Legal services in the United Kingdom</a></li> <li><a href="/wiki/Penal_law_(British)" title="Penal law (British)">British penal law</a></li></ul> </div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div><b><a href="/wiki/Category:Law_of_the_United_Kingdom" title="Category:Law of the United Kingdom">United Kingdom law category</a></b></div></td></tr></tbody></table></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Economy_of_the_United_Kingdom" style="padding:3px"><table class="nowraplinks hlist mw-collapsible mw-collapsed navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Economy_of_the_United_Kingdom" title="Template:Economy of the United Kingdom"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Economy_of_the_United_Kingdom" title="Template talk:Economy of the United Kingdom"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Economy_of_the_United_Kingdom" title="Special:EditPage/Template:Economy of the United Kingdom"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Economy_of_the_United_Kingdom" style="font-size:114%;margin:0 4em"><a href="/wiki/Economy_of_the_United_Kingdom" title="Economy of the United Kingdom">Economy of the United Kingdom</a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%;text-align:center">Companies</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/British_co-operative_movement" title="British co-operative movement">Co-operatives</a></li> <li><a href="/wiki/Category:Employee-owned_companies_of_the_United_Kingdom" title="Category:Employee-owned companies of the United Kingdom">Employee-owned companies</a></li> <li><a href="/wiki/FTSE_100_Index" title="FTSE 100 Index">FTSE 100 Index</a></li> <li><a href="/wiki/FTSE_250_Index" title="FTSE 250 Index">FTSE 250 Index</a></li> <li><a href="/wiki/FTSE_Fledgling_Index" title="FTSE Fledgling Index">FTSE Fledgling Index</a></li> <li><a href="/wiki/FTSE_SmallCap_Index" title="FTSE SmallCap Index">FTSE SmallCap Index</a></li> <li><a href="/wiki/Category:Government-owned_companies_of_the_United_Kingdom" title="Category:Government-owned companies of the United Kingdom">Government-owned companies</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%;text-align:center">Currency,<br />governance,<br />regulation</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Bank_of_England" title="Bank of England">Bank of England</a> <ul><li><a href="/wiki/Governor_of_the_Bank_of_England" title="Governor of the Bank of England">Governor of the Bank of England</a></li> <li><a href="/wiki/Monetary_Policy_Committee_(United_Kingdom)" title="Monetary Policy Committee (United Kingdom)">Monetary Policy Committee</a></li></ul></li> <li><a href="/wiki/Budget_of_the_United_Kingdom" title="Budget of the United Kingdom">Budget</a></li> <li><a class="mw-selflink selflink">Company law</a></li> <li><a href="/wiki/Competition_and_Markets_Authority" title="Competition and Markets Authority">Competition and Markets Authority</a></li> <li><a href="/wiki/Department_for_Business_and_Trade" title="Department for Business and Trade">Department for Business and Trade</a></li> <li><a href="/wiki/Financial_Conduct_Authority" title="Financial Conduct Authority">Financial Conduct Authority</a></li> <li><a href="/wiki/Gilt-edged_securities" title="Gilt-edged securities">Gilts</a></li> <li><a href="/wiki/HM_Revenue_%26_Customs" class="mw-redirect" title="HM Revenue & Customs">HM Revenue & Customs</a></li> <li><a href="/wiki/HM_Treasury" title="HM Treasury">HM Treasury</a> <ul><li><a href="/wiki/Chancellor_of_the_Exchequer" title="Chancellor of the Exchequer">Chancellor of the Exchequer</a></li> <li><a href="/wiki/Debt_Management_Office_(United_Kingdom)" title="Debt Management Office (United Kingdom)">Debt Management Office</a></li></ul></li> <li><a href="/wiki/Office_for_Budget_Responsibility" title="Office for Budget Responsibility">Office for Budget Responsibility</a></li> <li><a href="/wiki/Pound_sterling" title="Pound sterling">Pound sterling</a> <ul><li><a href="/wiki/Banknotes_of_the_pound_sterling" title="Banknotes of the pound sterling">Banknotes</a></li> <li><a href="/wiki/Coins_of_the_pound_sterling" title="Coins of the pound sterling">Coinage</a></li></ul></li> <li><a href="/wiki/Taxation_in_the_United_Kingdom" title="Taxation in the United Kingdom">Taxation</a></li> <li><a href="/wiki/UK_Statistics_Authority" title="UK Statistics Authority">UK Statistics Authority</a></li> <li><a href="/wiki/UK_Trade_%26_Investment" title="UK Trade & Investment">UK Trade & Investment</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%;text-align:center"><a href="/wiki/Economic_history_of_the_United_Kingdom" title="Economic history of the United Kingdom">History</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"></div><table class="nowraplinks navbox-subgroup" style="border-spacing:0"><tbody><tr><th scope="row" class="navbox-group" style="width:8em;text-align:left;background-color:#eee">Chronological</th><td class="navbox-list-with-group navbox-list navbox-odd" style="padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Navigation_Acts" title="Navigation Acts">1659–1849 Navigation Acts</a></li> <li><a href="/wiki/British_Agricultural_Revolution" title="British Agricultural Revolution">Agricultural Revolution</a></li> <li><a href="/wiki/Industrial_Revolution" title="Industrial Revolution">Industrial Revolution</a></li> <li><a href="/wiki/Financial_Revolution" title="Financial Revolution">Financial Revolution</a></li> <li><a href="/wiki/Panic_of_1796%E2%80%9397" class="mw-redirect" title="Panic of 1796–97">Panic of 1796–97</a></li> <li><a href="/wiki/Corn_Laws" title="Corn Laws">1815–46 Corn Laws</a></li> <li><a href="/wiki/New_Imperialism" title="New Imperialism">New Imperialism 1830s–1945</a></li> <li><a href="/wiki/Second_Industrial_Revolution" title="Second Industrial Revolution">Second Industrial Revolution 1860s–1914</a></li> <li><a href="/wiki/Long_Depression" title="Long Depression">1873–79 Long Depression</a></li> <li><a href="/wiki/1926_United_Kingdom_general_strike" title="1926 United Kingdom general strike">1926 general strike</a></li> <li><a href="/wiki/Great_Depression_in_the_United_Kingdom" title="Great Depression in the United Kingdom">1929–39 Great Depression</a></li> <li><a href="/wiki/Marshall_Plan" title="Marshall Plan">1948–52 Marshall Plan</a></li> <li><a href="/wiki/Three-Day_Week" title="Three-Day Week">1974 Three-Day Week</a></li> <li><a href="/wiki/Winter_of_Discontent" title="Winter of Discontent">1979 Winter of Discontent</a></li> <li><a href="/wiki/Big_Bang_(financial_markets)" title="Big Bang (financial markets)">1986 Big Bang</a></li> <li><a href="/wiki/Black_Wednesday" title="Black Wednesday">1992 Black Wednesday</a></li> <li><a href="/wiki/Great_Recession_in_Europe#United_Kingdom" title="Great Recession in Europe">Late-2000s recession</a></li> <li><a href="/wiki/2008_United_Kingdom_bank_rescue_package" title="2008 United Kingdom bank rescue package">2008 bank rescue package</a></li> <li><a href="/wiki/2009_United_Kingdom_bank_rescue_package" title="2009 United Kingdom bank rescue package">2009 bank rescue package</a></li> <li><a href="/wiki/Brexit" title="Brexit">2020 Withdrawal from the European Union</a> (<a href="/wiki/Growth_deal" title="Growth deal">Growth deal</a>)</li> <li><a href="/wiki/Government_of_the_United_Kingdom%27s_financial_response_to_the_COVID-19_pandemic" class="mw-redirect" title="Government of the United Kingdom's financial response to the COVID-19 pandemic">COVID-19 pandemic</a> <ul><li><a href="/wiki/Economic_impact_of_the_COVID-19_pandemic_in_the_United_Kingdom" title="Economic impact of the COVID-19 pandemic in the United Kingdom">Impact</a></li></ul></li> <li><a href="/wiki/2021%E2%80%93present_United_Kingdom_cost-of-living_crisis" title="2021–present United Kingdom cost-of-living crisis">Cost-of-living crisis</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:8em;text-align:left;background-color:#eee">Recurrent</th><td class="navbox-list-with-group navbox-list navbox-even" style="padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Economic_geography_of_the_United_Kingdom" title="Economic geography of the United Kingdom">Economic geography</a></li> <li><a href="/wiki/Free_trade" title="Free trade">Free trade</a></li> <li><a href="/wiki/Gold_standard" title="Gold standard">Gold standard</a></li> <li><a href="/wiki/List_of_recessions_in_the_United_Kingdom" title="List of recessions in the United Kingdom">Recessions and recoveries</a></li> <li><a href="/wiki/National_champions" title="National champions">National champions policy</a></li> <li><a href="/wiki/Economic_liberalism" title="Economic liberalism">Economic liberalism</a></li> <li><a href="/wiki/Privatization" title="Privatization">Privatisation</a></li> <li><a href="/wiki/Nationalization#United_Kingdom" title="Nationalization">Nationalisation</a></li></ul> </div></td></tr></tbody></table><div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%;text-align:center">Nations,<br />regions,<br />cities</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"></div><table class="nowraplinks navbox-subgroup" style="border-spacing:0"><tbody><tr><th scope="row" class="navbox-group" style="width:8em;text-align:left;background-color:#eee"><a href="/wiki/Economy_of_England" title="Economy of England">England</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Atlantic_Gateway_(North_West_England)" title="Atlantic Gateway (North West England)">Atlantic Gateway</a></li> <li><a href="/wiki/Economy_of_Birmingham" title="Economy of Birmingham">Birmingham</a> <ul><li><a href="/wiki/Big_City_Plan" title="Big City Plan">Big City Plan</a></li></ul></li> <li><a href="/wiki/Economy_of_Bristol" title="Economy of Bristol">Bristol</a></li> <li><a href="/wiki/Economy_of_Cornwall" title="Economy of Cornwall">Cornwall</a></li> <li><a href="/wiki/Economy_of_the_London_Borough_of_Croydon" title="Economy of the London Borough of Croydon">Croydon</a></li> <li><a href="/wiki/Economy_of_Devon" title="Economy of Devon">Devon</a></li> <li><a href="/wiki/Economy_of_Dorset" title="Economy of Dorset">Dorset</a></li> <li><a href="/wiki/Expansion_plans_for_Milton_Keynes" title="Expansion plans for Milton Keynes">Expansion plans for Milton Keynes</a></li> <li><a href="/wiki/Fishing_industry_in_England" title="Fishing industry in England">Fishing</a></li> <li><a href="/wiki/Economy_of_Leeds" title="Economy of Leeds">Leeds</a></li> <li><a href="/wiki/List_of_ceremonial_counties_in_England_by_GDP" title="List of ceremonial counties in England by GDP">List of counties by GDP</a></li> <li><a href="/wiki/List_of_ceremonial_counties_in_England_by_gross_value_added" class="mw-redirect" title="List of ceremonial counties in England by gross value added">List of counties by GVA</a></li> <li><a href="/wiki/Economy_of_Liverpool" title="Economy of Liverpool">Liverpool</a></li> <li><a href="/wiki/Economy_of_London" title="Economy of London">London</a> <ul><li><a href="/wiki/East_London_Tech_City" title="East London Tech City">East London Tech City</a></li> <li><a href="/wiki/London_Plan" title="London Plan">London Plan</a></li></ul></li> <li><a href="/wiki/M4_corridor" title="M4 corridor">M4 corridor</a></li> <li><a href="/wiki/M11_Corridor" class="mw-redirect" title="M11 Corridor">M11 Corridor</a></li> <li><a href="/wiki/Economy_of_Manchester" title="Economy of Manchester">Manchester</a></li> <li><a href="/wiki/Economy_of_Reading,_Berkshire" title="Economy of Reading, Berkshire">Reading</a></li> <li><a href="/wiki/Economy_of_Sheffield" title="Economy of Sheffield">Sheffield</a></li> <li><a href="/wiki/Silicon_Fen" title="Silicon Fen">Silicon Fen</a></li> <li><a href="/wiki/Economy_of_Somerset" title="Economy of Somerset">Somerset</a></li> <li><a href="/wiki/Thames_Gateway" title="Thames Gateway">Thames Gateway</a></li> <li><a href="/wiki/Tourism_in_England" title="Tourism in England">Tourism</a></li> <li><a href="/wiki/Transport_in_England" title="Transport in England">Transport</a></li> <li><a href="/wiki/Economy_of_Wiltshire" title="Economy of Wiltshire">Wiltshire</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:8em;text-align:left;background-color:#eee"><a href="/wiki/Economy_of_Northern_Ireland" title="Economy of Northern Ireland">Northern<br />Ireland</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Economy_of_Belfast" title="Economy of Belfast">Belfast</a></li> <li><a href="/wiki/Transport_in_Ireland" title="Transport in Ireland">Transport</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:8em;text-align:left;background-color:#eee"><a href="/wiki/Economy_of_Scotland" title="Economy of Scotland">Scotland</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Economy_of_Aberdeen" title="Economy of Aberdeen">Aberdeen</a></li> <li><a href="/wiki/Agriculture_in_Scotland" title="Agriculture in Scotland">Agriculture</a></li> <li><a href="/wiki/Economy_of_Edinburgh" title="Economy of Edinburgh">Edinburgh</a></li> <li><a href="/wiki/Industrial_Revolution_in_Scotland" title="Industrial Revolution in Scotland">Industrialisation</a></li> <li><a href="/wiki/Fishing_industry_in_Scotland" title="Fishing industry in Scotland">Fishing</a></li> <li><a href="/wiki/Economic_history_of_Scotland" title="Economic history of Scotland">History</a></li> <li><a href="/wiki/Category:Oil_and_gas_industry_in_Scotland" title="Category:Oil and gas industry in Scotland">Oil and gas</a></li> <li><a href="/wiki/Renewable_energy_in_Scotland" title="Renewable energy in Scotland">Renewable energy</a></li> <li><a href="/wiki/Silicon_Glen" title="Silicon Glen">Silicon Glen</a></li> <li><a href="/wiki/Tourism_in_Scotland" title="Tourism in Scotland">Tourism</a></li> <li><a href="/wiki/Transport_in_Scotland" title="Transport in Scotland">Transport</a></li> <li><a href="/wiki/Scotch_whisky" title="Scotch whisky">Whisky</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:8em;text-align:left;background-color:#eee"><a href="/wiki/Economy_of_Wales" title="Economy of Wales">Wales</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Agriculture_in_Wales" title="Agriculture in Wales">Agriculture</a></li> <li><a href="/wiki/Economy_of_Cardiff" title="Economy of Cardiff">Cardiff</a> <span style="font-size:85%;">(<a href="/wiki/Cardiff_Bay" title="Cardiff Bay">Cardiff Bay</a>)</span></li> <li><a href="/wiki/Fishing_industry_in_Wales" title="Fishing industry in Wales">Fishing</a></li> <li><a href="/wiki/Economic_history_of_Wales" title="Economic history of Wales">History</a></li> <li><a href="/wiki/Industrial_Revolution_in_Wales" title="Industrial Revolution in Wales">Industrialisation</a></li> <li><a href="/wiki/Renewable_energy_in_Wales" title="Renewable energy in Wales">Renewable energy</a></li> <li><a href="/wiki/Economy_of_Swansea" title="Economy of Swansea">Swansea</a></li> <li><a href="/wiki/Tourism_in_Wales" title="Tourism in Wales">Tourism</a></li> <li><a href="/wiki/Transport_in_Wales" title="Transport in Wales">Transport</a></li></ul> </div></td></tr></tbody></table><div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%;text-align:center">People<br />and labour</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Category:British_billionaires" title="Category:British billionaires">Billionaires</a></li> <li><a href="/wiki/Category:British_businesspeople" title="Category:British businesspeople">Businesspeople</a></li> <li><a href="/wiki/Demographics_of_the_United_Kingdom" title="Demographics of the United Kingdom">Demography</a></li> <li><a href="/wiki/Income_in_the_United_Kingdom" title="Income in the United Kingdom">Income</a> <ul><li><a href="/wiki/Poverty_in_the_United_Kingdom" title="Poverty in the United Kingdom">Poverty</a></li></ul></li> <li><a href="/wiki/United_Kingdom_labour_law" title="United Kingdom labour law">Labour law</a> <ul><li><a href="/wiki/United_Kingdom_employment_equality_law" title="United Kingdom employment equality law">Equal opportunities</a></li> <li><a href="/wiki/National_Minimum_Wage_Act_1998" title="National Minimum Wage Act 1998">Minimum wage</a></li> <li><a href="/wiki/Working_Time_Directive_2003" title="Working Time Directive 2003">Working Time Directive</a></li></ul></li> <li><a href="/wiki/Pensions_in_the_United_Kingdom" title="Pensions in the United Kingdom">Pensions</a></li> <li><a href="/wiki/Trade_unions_in_the_United_Kingdom" title="Trade unions in the United Kingdom">Trades unions</a> <ul><li><a href="/wiki/Trades_Union_Congress" title="Trades Union Congress">Trades Union Congress</a></li></ul></li> <li><a href="/wiki/Unemployment_in_the_United_Kingdom" title="Unemployment in the United Kingdom">Unemployment</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%;text-align:center">Sectors</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"></div><table class="nowraplinks navbox-subgroup" style="border-spacing:0"><tbody><tr><th scope="row" class="navbox-group" style="width:8em;text-align:left;background-color:#eee"><a href="/wiki/List_of_renewable_resources_produced_and_traded_by_the_United_Kingdom" title="List of renewable resources produced and traded by the United Kingdom">Resource and<br />production</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Energy_in_the_United_Kingdom" title="Energy in the United Kingdom">Energy</a>/<a href="/wiki/Renewable_energy_in_the_United_Kingdom" title="Renewable energy in the United Kingdom">Renewable energy</a> <ul><li><a href="/wiki/Biodiesel_in_the_United_Kingdom" class="mw-redirect" title="Biodiesel in the United Kingdom">Biodiesel</a></li> <li><a href="/wiki/Coal_mining_in_the_United_Kingdom" title="Coal mining in the United Kingdom">Coal</a></li> <li><a href="/wiki/Geothermal_power_in_the_United_Kingdom" title="Geothermal power in the United Kingdom">Geothermal</a></li> <li><a href="/wiki/Hydraulic_fracturing_in_the_United_Kingdom" class="mw-redirect" title="Hydraulic fracturing in the United Kingdom">Fracking</a></li> <li><a href="/wiki/Hydroelectricity_in_the_United_Kingdom" title="Hydroelectricity in the United Kingdom">Hydroelectricity</a></li> <li><a href="/wiki/Renewable_energy_in_the_United_Kingdom#Ocean_power" title="Renewable energy in the United Kingdom">Marine</a></li> <li><a href="/wiki/North_Sea_oil" title="North Sea oil">North Sea oil</a></li> <li><a href="/wiki/Solar_power_in_the_United_Kingdom" title="Solar power in the United Kingdom">Solar</a></li> <li><a href="/wiki/Wind_power_in_the_United_Kingdom" title="Wind power in the United Kingdom">Wind</a></li></ul></li> <li><a href="/wiki/British_cuisine" title="British cuisine">Food</a> <ul><li><a href="/wiki/Agriculture_in_the_United_Kingdom" title="Agriculture in the United Kingdom">Agriculture</a> <ul><li><a href="/wiki/Cider#United_Kingdom" title="Cider">Cider</a></li> <li><a href="/wiki/Wine_from_the_United_Kingdom" title="Wine from the United Kingdom">Wine</a></li> <li><a href="/wiki/Beer_in_the_United_Kingdom" title="Beer in the United Kingdom">Beer</a></li></ul></li> <li>Fishing <ul><li><a href="/wiki/Fishing_industry_in_England" title="Fishing industry in England">English</a></li> <li><a href="/wiki/Fishing_industry_in_Scotland" title="Fishing industry in Scotland">Scottish</a></li> <li><a href="/wiki/Fishing_industry_in_Wales" title="Fishing industry in Wales">Welsh</a></li></ul></li></ul></li> <li>Materials <ul><li><a href="/wiki/Forestry_in_the_United_Kingdom" title="Forestry in the United Kingdom">Forestry</a></li> <li><a href="/wiki/Mining_in_the_United_Kingdom" title="Mining in the United Kingdom">Mining</a></li></ul></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:8em;text-align:left;background-color:#eee"><a href="/wiki/Financial_services_in_the_United_Kingdom" title="Financial services in the United Kingdom">Financial<br />services</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Baltic_Exchange" title="Baltic Exchange">Baltic Exchange</a></li> <li><a href="/wiki/Banking_in_the_United_Kingdom" title="Banking in the United Kingdom">Banking</a> <ul><li><a href="/wiki/List_of_banks_in_the_United_Kingdom" title="List of banks in the United Kingdom">List of banks</a></li> <li><a href="/wiki/List_of_building_societies#United_Kingdom" class="mw-redirect" title="List of building societies">List of UK building societies</a></li></ul></li> <li><a href="/wiki/Canary_Wharf" title="Canary Wharf">Canary Wharf</a></li> <li><a href="/wiki/City_of_London" title="City of London">The City</a></li> <li><a href="/wiki/Euronext#Euronext.liffe" title="Euronext">Euronext.liffe</a></li> <li><a href="/wiki/International_Financial_Services_District" title="International Financial Services District">Glasgow International Financial Services District</a></li> <li><a href="/wiki/Insurance_in_the_United_Kingdom" title="Insurance in the United Kingdom">Insurance</a> <ul><li><a href="/wiki/Lloyd%27s_of_London" title="Lloyd's of London">Lloyd's of London</a></li></ul></li> <li><a href="/wiki/LCH_(clearing_house)" title="LCH (clearing house)">LCH</a></li> <li><a href="/wiki/Libor" title="Libor">London Interbank Offered Rate</a></li> <li><a href="/wiki/London_Metal_Exchange" title="London Metal Exchange">London Metal Exchange</a></li> <li><a href="/wiki/London_Platinum_and_Palladium_Market" title="London Platinum and Palladium Market">London Platinum and Palladium Market</a></li> <li><a href="/wiki/London_Stock_Exchange" title="London Stock Exchange">London Stock Exchange</a> <ul><li><a href="/wiki/Alternative_Investment_Market" title="Alternative Investment Market">Alternative Investment Market</a></li></ul></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:8em;text-align:left;background-color:#eee">Other</th><td class="navbox-list-with-group navbox-list navbox-even" style="padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Education_in_the_United_Kingdom" title="Education in the United Kingdom">Education</a> <ul><li><a href="/wiki/International_students_in_the_United_Kingdom" title="International students in the United Kingdom">International students</a></li></ul></li> <li>Entertainment & <a href="/wiki/Media_of_the_United_Kingdom" class="mw-redirect" title="Media of the United Kingdom">Media</a> <ul><li><a href="/wiki/Cinema_of_the_United_Kingdom" title="Cinema of the United Kingdom">Cinema</a></li> <li><a href="/wiki/Gambling_in_the_United_Kingdom" title="Gambling in the United Kingdom">Gambling</a></li> <li><a href="/wiki/List_of_newspapers_in_the_United_Kingdom_by_circulation" title="List of newspapers in the United Kingdom by circulation">Newspapers</a></li> <li><a href="/wiki/Radio_in_the_United_Kingdom" title="Radio in the United Kingdom">Radio</a></li> <li><a href="/wiki/Television_in_the_United_Kingdom" title="Television in the United Kingdom">Television</a></li> <li><a href="/wiki/Theatre_of_the_United_Kingdom" title="Theatre of the United Kingdom">Theatre</a></li></ul></li> <li><a href="/wiki/Health_care_in_the_United_Kingdom" class="mw-redirect" title="Health care in the United Kingdom">Healthcare</a></li> <li><a href="/wiki/Legal_services_in_the_United_Kingdom" title="Legal services in the United Kingdom">Legal services</a></li> <li><a href="/wiki/Manufacturing_in_the_United_Kingdom" title="Manufacturing in the United Kingdom">Manufacturing</a> <ul><li><a href="/wiki/Aerospace_industry_in_the_United_Kingdom" title="Aerospace industry in the United Kingdom">Aerospace</a></li> <li><a href="/wiki/Automotive_industry_in_the_United_Kingdom" title="Automotive industry in the United Kingdom">Automotive</a></li> <li><a href="/wiki/Pharmaceutical_industry_in_the_United_Kingdom" title="Pharmaceutical industry in the United Kingdom">Pharmaceuticals</a></li> <li><a href="/wiki/List_of_exports_of_the_United_Kingdom" title="List of exports of the United Kingdom">Exports</a></li></ul></li> <li>Property <ul><li><a href="/wiki/Architecture_of_the_United_Kingdom" title="Architecture of the United Kingdom">Architecture</a></li> <li><a href="/wiki/Construction_industry_of_the_United_Kingdom" title="Construction industry of the United Kingdom">Construction</a></li> <li><a href="/wiki/Affordability_of_housing_in_the_United_Kingdom" title="Affordability of housing in the United Kingdom">Housing</a></li> <li><a href="/wiki/Real_estate_in_the_United_Kingdom" title="Real estate in the United Kingdom">Real estate</a></li></ul></li> <li><a href="/wiki/Science_and_technology_in_the_United_Kingdom" title="Science and technology in the United Kingdom">Science and technology</a> <ul><li><a href="/wiki/Internet_in_the_United_Kingdom" title="Internet in the United Kingdom">Internet</a></li> <li><a href="/wiki/Telecommunications_in_the_United_Kingdom" title="Telecommunications in the United Kingdom">Telecommunications</a></li></ul></li> <li><a href="/wiki/List_of_supermarket_chains_in_the_United_Kingdom" title="List of supermarket chains in the United Kingdom">Supermarkets</a></li> <li><a href="/wiki/Tourism_in_the_United_Kingdom" title="Tourism in the United Kingdom">Tourism</a></li> <li><a href="/wiki/Transport_in_the_United_Kingdom" title="Transport in the United Kingdom">Transport</a> <ul><li><a href="/wiki/Air_transport_in_the_United_Kingdom" title="Air transport in the United Kingdom">Aviation</a></li> <li><a href="/wiki/Structure_of_the_rail_industry_in_the_United_Kingdom" title="Structure of the rail industry in the United Kingdom">Rail</a> <ul><li><a href="/wiki/Inter-city_rail_in_the_United_Kingdom" title="Inter-city rail in the United Kingdom">Inter-city</a></li> <li><a href="/wiki/High-speed_rail_in_the_United_Kingdom" title="High-speed rail in the United Kingdom">High-speed</a></li></ul></li></ul></li></ul> </div></td></tr></tbody></table><div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%;text-align:center">Trade and<br />business<br />organisations</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Category:Business_organisations_based_in_the_United_Kingdom" title="Category:Business organisations based in the United Kingdom">Business organisations</a></li> <li><a href="/wiki/British_Bankers%27_Association" title="British Bankers' Association">British Bankers' Association</a></li> <li><a href="/wiki/British_Chambers_of_Commerce" title="British Chambers of Commerce">British Chambers of Commerce</a></li> <li><a href="/wiki/Confederation_of_British_Industry" title="Confederation of British Industry">Confederation of British Industry</a></li> <li><a href="/wiki/Co-operatives_UK" title="Co-operatives UK">Co-operatives UK</a></li> <li><a href="/wiki/Federation_of_Small_Businesses" title="Federation of Small Businesses">Federation of Small Businesses</a></li> <li><a href="/wiki/Category:Trade_associations_based_in_the_United_Kingdom" title="Category:Trade associations based in the United Kingdom">Industry trade groups</a></li> <li><a href="/wiki/Institute_of_Directors" title="Institute of Directors">Institute of Directors</a></li> <li><a href="/wiki/Make_UK" title="Make UK">Make UK</a></li> <li><a href="/wiki/UK_Payments_Administration" title="UK Payments Administration">UK Payments Administration</a></li></ul> </div></td></tr><tr><td class="navbox-abovebelow" colspan="2" style="font-weight:bold"><div> <ul><li><span class="noviewer" typeof="mw:File"><span title="Category"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/16px-Symbol_category_class.svg.png" decoding="async" width="16" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/23px-Symbol_category_class.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/31px-Symbol_category_class.svg.png 2x" data-file-width="180" data-file-height="185" /></span></span> <a href="/wiki/Category:Economy_of_the_United_Kingdom" title="Category:Economy of the United Kingdom">Category</a></li> <li><span class="noviewer" typeof="mw:File"><span title="Commons page"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/12px-Commons-logo.svg.png" decoding="async" width="12" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/18px-Commons-logo.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/24px-Commons-logo.svg.png 2x" data-file-width="1024" data-file-height="1376" /></span></span> <a href="https://commons.wikimedia.org/wiki/Category:Economy_of_the_United_Kingdom" class="extiw" title="commons:Category:Economy of the United Kingdom">Commons</a></li></ul> </div></td></tr></tbody></table></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Major_United_Kingdom_stock_market_indices" style="padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:UK_Stock_market_indexes" title="Template:UK Stock market indexes"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:UK_Stock_market_indexes" title="Template talk:UK Stock market indexes"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:UK_Stock_market_indexes" title="Special:EditPage/Template:UK Stock market indexes"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Major_United_Kingdom_stock_market_indices" style="font-size:114%;margin:0 4em">Major United Kingdom <a href="/wiki/Stock_market_index" title="Stock market index">stock market indices</a></div></th></tr><tr><td colspan="2" class="navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/FT_30" title="FT 30">FT 30</a></li> <li><a href="/wiki/FTSE_100_Index" title="FTSE 100 Index">FTSE 100 Index</a></li> <li><a href="/wiki/FTSE_250_Index" title="FTSE 250 Index">FTSE 250 Index</a></li> <li><a href="/wiki/FTSE_350_Index" title="FTSE 350 Index">FTSE 350 Index</a></li> <li><a href="/wiki/FTSE_SmallCap_Index" title="FTSE SmallCap Index">FTSE SmallCap Index</a></li> <li><a href="/wiki/FTSE_All-Share_Index" title="FTSE All-Share Index">FTSE All-Share Index</a></li> <li><a href="/wiki/FTSE_Fledgling_Index" title="FTSE Fledgling Index">FTSE Fledgling Index</a></li> <li><a href="/wiki/FTSE_AIM_UK_50_Index" title="FTSE AIM UK 50 Index">FTSE AIM UK 50 Index</a></li> <li><a href="/wiki/FTSE_AIM_100_Index" title="FTSE AIM 100 Index">FTSE AIM 100 Index</a></li></ul> </div></td></tr></tbody></table></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="23x15px&#124;border_&#124;alt=United_Kingdom&#124;link=United_Kingdom_Original_companies_of_FT_30_in_the_United_Kingdom" style="padding:3px"><table class="nowraplinks mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:FT_30_constituents" title="Template:FT 30 constituents"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:FT_30_constituents" title="Template talk:FT 30 constituents"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:FT_30_constituents" title="Special:EditPage/Template:FT 30 constituents"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="23x15px&#124;border_&#124;alt=United_Kingdom&#124;link=United_Kingdom_Original_companies_of_FT_30_in_the_United_Kingdom" style="font-size:114%;margin:0 4em"><span class="flagicon"><span class="mw-image-border" typeof="mw:File"><a href="/wiki/United_Kingdom" title="United Kingdom"><img alt="United Kingdom" src="//upload.wikimedia.org/wikipedia/en/thumb/a/ae/Flag_of_the_United_Kingdom.svg/23px-Flag_of_the_United_Kingdom.svg.png" decoding="async" width="23" height="12" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/a/ae/Flag_of_the_United_Kingdom.svg/35px-Flag_of_the_United_Kingdom.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/a/ae/Flag_of_the_United_Kingdom.svg/46px-Flag_of_the_United_Kingdom.svg.png 2x" data-file-width="1200" data-file-height="600" /></a></span></span> Original companies of <a href="/wiki/FT_30" title="FT 30">FT 30</a> in the United Kingdom</div></th></tr><tr><td colspan="2" class="navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"><i>As of 1 July 1935</i> <ul><li><a href="/wiki/Blue_Circle" class="mw-redirect" title="Blue Circle">Associated Portland Cement</a></li> <li><a href="/wiki/Austin_Motor_Company" title="Austin Motor Company">Austin Motor</a></li> <li><a href="/wiki/Bass_Brewery" title="Bass Brewery">Bass</a></li> <li><a href="/wiki/Bolsover_Colliery_Company" title="Bolsover Colliery Company">Bolsover Colliery</a></li> <li><a href="/wiki/British_Insulated_Callender%27s_Cables" title="British Insulated Callender's Cables">Callenders Cables & Construction</a></li> <li><a href="/wiki/Coats_Group" title="Coats Group">Coats</a></li> <li><a href="/wiki/Courtaulds" title="Courtaulds">Courtaulds</a></li> <li><a href="/wiki/Distillers_Company" class="mw-redirect" title="Distillers Company">Distillers</a></li> <li><a href="/wiki/Dorman_Long" title="Dorman Long">Dorman Long</a></li> <li><a href="/wiki/Dunlop_Rubber" title="Dunlop Rubber">Dunlop Rubber</a></li> <li><a href="/wiki/EMI" title="EMI">Electrical & Musical Industries</a></li> <li><a href="/wiki/Fine_Spinners_and_Doublers" title="Fine Spinners and Doublers">Fine Spinners and Doublers</a></li> <li><a href="/wiki/General_Electric_Company" title="General Electric Company">General Electric Company</a></li> <li><a href="/wiki/GKN" title="GKN">Guest Keen & Nettlefolds</a></li> <li><a href="/wiki/Harrods" title="Harrods">Harrods</a></li> <li><a href="/wiki/Hawker_Siddeley" title="Hawker Siddeley">Hawker Siddeley</a></li> <li><a href="/wiki/Imperial_Chemical_Industries" title="Imperial Chemical Industries">Imperial Chemical Industries</a></li> <li><a href="/wiki/Imperial_Brands" title="Imperial Brands">Imperial Tobacco</a></li> <li><a href="/wiki/International_Tea_Co._Stores" title="International Tea Co. Stores">International Tea Co. Stores</a></li> <li><a href="/wiki/London_Brick_Company" title="London Brick Company">London Brick</a></li> <li><a href="/wiki/Murex_(company)" title="Murex (company)">Murex</a></li> <li><a href="/wiki/Patons_%26_Baldwins" class="mw-redirect" title="Patons & Baldwins">Patons & Baldwins</a></li> <li><a href="/wiki/Pinchin_Johnson_%26_Associates" title="Pinchin Johnson & Associates">Pinchin Johnson & Associates</a></li> <li><a href="/wiki/Rolls-Royce_Limited" title="Rolls-Royce Limited">Rolls-Royce</a></li> <li><a href="/wiki/Tate_%26_Lyle" title="Tate & Lyle">Tate & Lyle</a></li> <li><a href="/wiki/Turner_%26_Newall" title="Turner & Newall">Turner & Newall</a></li> <li><a href="/wiki/United_Steel_Companies" title="United Steel Companies">United Steel Companies</a></li> <li><a href="/wiki/Vickers-Armstrongs" title="Vickers-Armstrongs">Vickers-Armstrongs</a></li> <li><a href="/wiki/Watney_Combe_%26_Reid" title="Watney Combe & Reid">Watney Combe & Reid</a></li> <li><a href="/wiki/Woolworths_(United_Kingdom)" title="Woolworths (United Kingdom)">FW Woolworth & Co</a></li></ul></div></td></tr></tbody></table></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="23x15px&#124;border_&#124;alt=United_Kingdom&#124;link=United_Kingdom_FTSE_100_companies_of_the_United_Kingdom_→_FTSE_250" style="padding:3px"><table class="nowraplinks mw-collapsible mw-collapsed navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:FTSE_100_Index_constituents" title="Template:FTSE 100 Index constituents"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:FTSE_100_Index_constituents" title="Template talk:FTSE 100 Index constituents"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:FTSE_100_Index_constituents" title="Special:EditPage/Template:FTSE 100 Index constituents"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="23x15px&#124;border_&#124;alt=United_Kingdom&#124;link=United_Kingdom_FTSE_100_companies_of_the_United_Kingdom_→_FTSE_250" style="font-size:114%;margin:0 4em"><span class="flagicon"><span class="mw-image-border" typeof="mw:File"><a href="/wiki/United_Kingdom" title="United Kingdom"><img alt="United Kingdom" src="//upload.wikimedia.org/wikipedia/en/thumb/a/ae/Flag_of_the_United_Kingdom.svg/23px-Flag_of_the_United_Kingdom.svg.png" decoding="async" width="23" height="12" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/a/ae/Flag_of_the_United_Kingdom.svg/35px-Flag_of_the_United_Kingdom.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/a/ae/Flag_of_the_United_Kingdom.svg/46px-Flag_of_the_United_Kingdom.svg.png 2x" data-file-width="1200" data-file-height="600" /></a></span></span> <a href="/wiki/FTSE_100_Index" title="FTSE 100 Index">FTSE 100</a> companies of the United Kingdom   → <small><a href="/wiki/FTSE_250_Index" title="FTSE 250 Index">FTSE 250</a></small></div></th></tr><tr><td colspan="2" class="navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/3i" title="3i">3i</a></li> <li><a href="/wiki/Admiral_Group" title="Admiral Group">Admiral Group</a></li> <li><a href="/wiki/Airtel_Africa" title="Airtel Africa">Airtel Africa</a></li> <li><a href="/wiki/Anglo_American_plc" title="Anglo American plc">Anglo American</a></li> <li><a href="/wiki/Antofagasta_plc" title="Antofagasta plc">Antofagasta</a></li> <li><a href="/wiki/Ashtead_Group" title="Ashtead Group">Ashtead Group</a></li> <li><a href="/wiki/Associated_British_Foods" title="Associated British Foods">Associated British Foods</a></li> <li><a href="/wiki/AstraZeneca" title="AstraZeneca">AstraZeneca</a></li> <li><a href="/wiki/Auto_Trader_Group" title="Auto Trader Group">Auto Trader Group</a></li> <li><a href="/wiki/Aviva" title="Aviva">Aviva</a></li> <li><a href="/wiki/B%26M" title="B&M">B&M</a></li> <li><a href="/wiki/BAE_Systems" title="BAE Systems">BAE Systems</a></li> <li><a href="/wiki/Barclays" title="Barclays">Barclays</a></li> <li><a href="/wiki/Barratt_Redrow" title="Barratt Redrow">Barratt Redrow</a></li> <li><a href="/wiki/Beazley_plc" title="Beazley plc">Beazley</a></li> <li><a href="/wiki/Berkeley_Group_Holdings" title="Berkeley Group Holdings">Berkeley Group Holdings</a></li> <li><a href="/wiki/BP" title="BP">BP</a></li> <li><a href="/wiki/British_American_Tobacco" title="British American Tobacco">British American Tobacco</a></li> <li><a href="/wiki/British_Land" title="British Land">British Land</a></li> <li><a href="/wiki/BT_Group" title="BT Group">BT Group</a></li> <li><a href="/wiki/Bunzl" title="Bunzl">Bunzl</a></li> <li><a href="/wiki/Centrica" title="Centrica">Centrica</a></li> <li><a href="/wiki/Coca-Cola_Hellenic_Bottling_Company" title="Coca-Cola Hellenic Bottling Company">Coca-Cola HBC</a></li> <li><a href="/wiki/Compass_Group" title="Compass Group">Compass Group</a></li> <li><a href="/wiki/Convatec" title="Convatec">Convatec</a></li> <li><a href="/wiki/Croda_International" title="Croda International">Croda International</a></li> <li><a href="/wiki/DCC_plc" title="DCC plc">DCC</a></li> <li><a href="/wiki/Diageo" title="Diageo">Diageo</a></li> <li><a href="/wiki/Diploma_plc" title="Diploma plc">Diploma</a></li> <li><a href="/wiki/EasyJet" title="EasyJet">EasyJet</a></li> <li><a href="/wiki/Endeavour_Mining" title="Endeavour Mining">Endeavour Mining</a></li> <li><a href="/wiki/Entain" title="Entain">Entain</a></li> <li><a href="/wiki/Experian" title="Experian">Experian</a></li> <li><a href="/wiki/F_%26_C_Investment_Trust" title="F & C Investment Trust">F & C Investment Trust</a></li> <li><a href="/wiki/Frasers_Group" title="Frasers Group">Frasers Group</a></li> <li><a href="/wiki/Fresnillo_plc" title="Fresnillo plc">Fresnillo</a></li> <li><a href="/wiki/Glencore" title="Glencore">Glencore</a></li> <li><a href="/wiki/GSK_plc" title="GSK plc">GSK</a></li> <li><a href="/wiki/Haleon" title="Haleon">Haleon</a></li> <li><a href="/wiki/Halma_plc" title="Halma plc">Halma</a></li> <li><a href="/wiki/Hargreaves_Lansdown" title="Hargreaves Lansdown">Hargreaves Lansdown</a></li> <li><a href="/wiki/Hikma_Pharmaceuticals" title="Hikma Pharmaceuticals">Hikma Pharmaceuticals</a></li> <li><a href="/wiki/Hiscox" title="Hiscox">Hiscox</a></li> <li><a href="/wiki/Howdens_Joinery" title="Howdens Joinery">Howdens Joinery</a></li> <li><a href="/wiki/HSBC" title="HSBC">HSBC</a></li> <li><a href="/wiki/IHG_Hotels_%26_Resorts" title="IHG Hotels & Resorts">IHG Hotels & Resorts</a></li> <li><a href="/wiki/IMI_plc" title="IMI plc">IMI</a></li> <li><a href="/wiki/Imperial_Brands" title="Imperial Brands">Imperial Brands</a></li> <li><a href="/wiki/Informa" title="Informa">Informa</a></li> <li><a href="/wiki/Intermediate_Capital_Group" title="Intermediate Capital Group">Intermediate Capital Group</a></li> <li><a href="/wiki/International_Airlines_Group" title="International Airlines Group">International Airlines Group</a></li> <li><a href="/wiki/Intertek" title="Intertek">Intertek</a></li> <li><a href="/wiki/JD_Sports" title="JD Sports">JD Sports</a></li> <li><a href="/wiki/Kingfisher_plc" title="Kingfisher plc">Kingfisher</a></li> <li><a href="/wiki/Landsec" title="Landsec">Land Securities</a></li> <li><a href="/wiki/Legal_%26_General" title="Legal & General">Legal & General</a></li> <li><a href="/wiki/Lloyds_Banking_Group" title="Lloyds Banking Group">Lloyds Banking Group</a></li> <li><a href="/wiki/LondonMetric_Property" title="LondonMetric Property">LondonMetric Property</a></li> <li><a href="/wiki/London_Stock_Exchange_Group" title="London Stock Exchange Group">London Stock Exchange Group</a></li> <li><a href="/wiki/M%26G" title="M&G">M&G</a></li> <li><a href="/wiki/Marks_%26_Spencer" title="Marks & Spencer">Marks & Spencer</a></li> <li><a href="/wiki/Melrose_Industries" title="Melrose Industries">Melrose Industries</a></li> <li><a href="/wiki/Mondi" title="Mondi">Mondi</a></li> <li><a href="/wiki/National_Grid_plc" title="National Grid plc">National Grid</a></li> <li><a href="/wiki/NatWest_Group" title="NatWest Group">NatWest Group</a></li> <li><a href="/wiki/Next_plc" title="Next plc">Next</a></li> <li><a href="/wiki/Pearson_plc" title="Pearson plc">Pearson</a></li> <li><a href="/wiki/Pershing_Square_Holdings" title="Pershing Square Holdings">Pershing Square Holdings</a></li> <li><a href="/wiki/Persimmon_plc" title="Persimmon plc">Persimmon</a></li> <li><a href="/wiki/Phoenix_Group" title="Phoenix Group">Phoenix Group</a></li> <li><a href="/wiki/Prudential_plc" title="Prudential plc">Prudential</a></li> <li><a href="/wiki/Reckitt" title="Reckitt">Reckitt</a></li> <li><a href="/wiki/RELX" title="RELX">RELX</a></li> <li><a href="/wiki/Rentokil_Initial" title="Rentokil Initial">Rentokil Initial</a></li> <li><a href="/wiki/Rightmove" title="Rightmove">Rightmove</a></li> <li><a href="/wiki/Rio_Tinto_(corporation)" title="Rio Tinto (corporation)">Rio Tinto</a></li> <li><a href="/wiki/Rolls-Royce_Holdings" title="Rolls-Royce Holdings">Rolls-Royce</a></li> <li><a href="/wiki/Sage_Group" title="Sage Group">Sage Group</a></li> <li><a href="/wiki/Sainsbury%27s" title="Sainsbury's">J Sainsbury</a></li> <li><a href="/wiki/Schroders" title="Schroders">Schroders</a></li> <li><a href="/wiki/Scottish_Mortgage_Investment_Trust" title="Scottish Mortgage Investment Trust">Scottish Mortgage Investment Trust</a></li> <li><a href="/wiki/Segro" title="Segro">Segro</a></li> <li><a href="/wiki/Severn_Trent" title="Severn Trent">Severn Trent</a></li> <li><a href="/wiki/Shell_plc" title="Shell plc">Shell</a></li> <li><a href="/wiki/DS_Smith" title="DS Smith">DS Smith</a></li> <li><a href="/wiki/Smith_%26_Nephew" title="Smith & Nephew">Smith & Nephew</a></li> <li><a href="/wiki/Smiths_Group" title="Smiths Group">Smiths Group</a></li> <li><a href="/wiki/Spirax_Group" title="Spirax Group">Spirax Group</a></li> <li><a href="/wiki/SSE_plc" title="SSE plc">SSE</a></li> <li><a href="/wiki/Standard_Chartered" title="Standard Chartered">Standard Chartered</a></li> <li><a href="/wiki/Taylor_Wimpey" title="Taylor Wimpey">Taylor Wimpey</a></li> <li><a href="/wiki/Tesco" title="Tesco">Tesco</a></li> <li><a href="/wiki/Unilever" title="Unilever">Unilever</a></li> <li><a href="/wiki/United_Utilities" title="United Utilities">United Utilities</a></li> <li><a href="/wiki/Unite_Students" title="Unite Students">Unite Group</a></li> <li><a href="/wiki/Vistry_Group" title="Vistry Group">Vistry</a></li> <li><a href="/wiki/Vodafone" title="Vodafone">Vodafone</a></li> <li><a href="/wiki/Weir_Group" title="Weir Group">Weir Group</a></li> <li><a href="/wiki/Whitbread" title="Whitbread">Whitbread</a></li> <li><a href="/wiki/WPP_plc" title="WPP plc">WPP</a></li></ul> </div></td></tr></tbody></table></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"></div><div role="navigation" class="navbox" aria-labelledby="Chartered_companies" style="padding:3px"><table class="nowraplinks hlist mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Chartered_companies" title="Template:Chartered companies"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Chartered_companies" title="Template talk:Chartered companies"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Chartered_companies" title="Special:EditPage/Template:Chartered companies"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Chartered_companies" style="font-size:114%;margin:0 4em"><a href="/wiki/Chartered_company" title="Chartered company">Chartered companies</a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%">British</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/African_Company_of_Merchants" title="African Company of Merchants">African Company of Merchants</a></li> <li><a href="/wiki/Barbary_Company" title="Barbary Company">Barbary Company</a></li> <li><a href="/wiki/British_American_Land_Company" title="British American Land Company">British American Land Company</a></li> <li><a href="/wiki/Imperial_British_East_Africa_Company" title="Imperial British East Africa Company">British East Africa Company</a></li> <li><a href="/wiki/Canada_Company" title="Canada Company">Canada Company</a></li> <li><a href="/wiki/Canterbury_Association" title="Canterbury Association">Canterbury Association</a></li> <li><a href="/wiki/Company_of_Merchant_Adventurers_of_London" title="Company of Merchant Adventurers of London">Company of Merchant Adventurers of London</a></li> <li><a href="/wiki/Company_of_Merchant_Adventurers_to_New_Lands" title="Company of Merchant Adventurers to New Lands">Company of Merchant Adventurers to New Lands</a></li> <li><a href="/wiki/Company_of_Scotland" title="Company of Scotland">Company of Scotland</a></li> <li><a href="/wiki/East_India_Company" title="East India Company">East India Company</a></li> <li><a href="/wiki/Eastern_Archipelago_Company" title="Eastern Archipelago Company">Eastern Archipelago Company</a></li> <li><a href="/wiki/Eastland_Company" title="Eastland Company">Eastland Company</a></li> <li><a href="/wiki/Guinea_Company_(London)" title="Guinea Company (London)">Guinea Company</a></li> <li><a href="/wiki/Hudson%27s_Bay_Company" title="Hudson's Bay Company">Hudson's Bay Company</a></li> <li><a href="/wiki/Levant_Company" title="Levant Company">Levant Company</a></li> <li><a href="/wiki/London_and_Bristol_Company" title="London and Bristol Company">London and Bristol Company</a></li> <li><a href="/wiki/Massachusetts_Bay_Colony" title="Massachusetts Bay Colony">Massachusetts Bay Company</a></li> <li><a href="/wiki/Muscovy_Company" title="Muscovy Company">Muscovy Company</a></li> <li><a href="/wiki/New_Zealand_Company" title="New Zealand Company">New Zealand Company</a></li> <li><a href="/wiki/North_Borneo_Chartered_Company" title="North Borneo Chartered Company">North Borneo Company</a></li> <li><a href="/wiki/Providence_Island_Company" title="Providence Island Company">Providence Island Company</a></li> <li><a href="/wiki/Royal_African_Company" title="Royal African Company">Royal African Company</a></li> <li><a href="/wiki/Royal_British_Bank" title="Royal British Bank">Royal British Bank</a></li> <li><a href="/wiki/Royal_Niger_Company" title="Royal Niger Company">Royal Niger Company</a></li> <li><a href="/wiki/British_South_Africa_Company" title="British South Africa Company">South Africa Company</a></li> <li><a href="/wiki/Sierra_Leone_Company" title="Sierra Leone Company">Sierra Leone Company</a></li> <li><a href="/wiki/Somers_Isles_Company" title="Somers Isles Company">Somers Isles Company</a></li> <li><a href="/wiki/South_Australian_Company" title="South Australian Company">South Australian Company</a></li> <li><a href="/wiki/South_Sea_Company" title="South Sea Company">South Sea Company</a></li> <li><a href="/wiki/Spanish_Company" title="Spanish Company">Spanish Company</a></li> <li><a href="/wiki/Venice_Company" title="Venice Company">Venice Company</a></li> <li><a href="/wiki/Virginia_Company" title="Virginia Company">Virginia Company</a> <ul><li><a href="/wiki/Plymouth_Company" title="Plymouth Company">Plymouth Company</a></li> <li><a href="/wiki/Virginia_Company_of_London" title="Virginia Company of London">Virginia Company of London</a></li></ul></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">French</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><i><a href="/wiki/Compagnie_de_l%27Occident" title="Compagnie de l'Occident">Compagnie de l'Occident</a></i></li> <li><i><a href="/wiki/Company_of_the_American_Islands" title="Company of the American Islands">Compagnie des Îles de l'Amérique</a></i></li> <li><a href="/wiki/Company_of_Habitants" title="Company of Habitants">Company of Habitants</a></li> <li><a href="/wiki/Company_of_One_Hundred_Associates" title="Company of One Hundred Associates">Company of One Hundred Associates</a></li> <li><a href="/wiki/French_East_India_Company" title="French East India Company">East India Company</a></li> <li><a href="/wiki/Mississippi_Company" title="Mississippi Company">Mississippi Company</a></li> <li><a href="/wiki/Compagnie_du_S%C3%A9n%C3%A9gal" title="Compagnie du Sénégal">Senegal Company</a></li> <li><a href="/wiki/French_West_India_Company" title="French West India Company">West India Company</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">German</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Brandenburger_Gold_Coast" title="Brandenburger Gold Coast">Brandenburg African Company</a></li> <li><a href="/wiki/German_East_Africa_Company" title="German East Africa Company">East Africa Company</a></li> <li><a href="/wiki/Emden_Company" title="Emden Company">Emden Company</a></li> <li><a href="/wiki/German_New_Guinea_Company" title="German New Guinea Company">New Guinea Company</a></li> <li><a href="/wiki/German_West_African_Company" title="German West African Company">West African Company</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Portuguese</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Cacheu_and_Cape_Verde_Company" title="Cacheu and Cape Verde Company">Cacheu and Cape Verde Company</a></li> <li><a href="/wiki/Portuguese_East_India_Company" title="Portuguese East India Company">East India Company</a></li> <li><a href="/wiki/Gr%C3%A3o_Par%C3%A1_and_Maranh%C3%A3o_Company" title="Grão Pará and Maranhão Company">Grão Pará and Maranhão Company</a></li> <li><a href="/wiki/Casa_da_Guin%C3%A9" title="Casa da Guiné">Company of Guinea</a></li> <li><a href="/wiki/Casa_da_%C3%8Dndia" title="Casa da Índia">House of India</a></li> <li><a href="/wiki/Mozambique_Company" title="Mozambique Company">Mozambique Company</a></li> <li><a href="/wiki/Zambezia_Company" title="Zambezia Company">Zambezia Company</a></li> <li><a href="/wiki/Niassa_Company" title="Niassa Company">Niassa Company</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Austrian and<br />Low Countries</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Brabantsche_Compagnie" title="Brabantsche Compagnie">Brabantsche Compagnie</a></li> <li><a href="/wiki/Dutch_East_India_Company" title="Dutch East India Company">Dutch East India Company</a></li> <li><a href="/wiki/Austrian_East_India_Company" title="Austrian East India Company">Imperial Company of Trieste and Antwerp</a></li> <li><a href="/wiki/Imperial_Privileged_Oriental_Company" title="Imperial Privileged Oriental Company">Imperial Privileged Oriental Company</a></li> <li><a href="/wiki/New_Netherland_Company" title="New Netherland Company">New Netherland Company</a></li> <li><a href="/wiki/Noordsche_Compagnie" title="Noordsche Compagnie">Noordsche Compagnie</a></li> <li><a href="/wiki/Ostend_Company" title="Ostend Company">Ostend Company</a></li> <li><a href="/wiki/Dutch_West_India_Company" title="Dutch West India Company">Dutch West India Company</a></li> <li><a href="/wiki/Compagnie_van_Verre" title="Compagnie van Verre">Compagnie van Verre</a></li> <li><a href="/wiki/Compagnie_van_De_Moucheron" title="Compagnie van De Moucheron">Compagnie van De Moucheron</a></li> <li><a href="/wiki/Veerse_Compagnie" title="Veerse Compagnie">Veerse Compagnie</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Spanish</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Barcelona_Trading_Company" title="Barcelona Trading Company">Barcelona Trading Company</a></li> <li><a href="/wiki/Guipuzcoan_Company_of_Caracas" title="Guipuzcoan Company of Caracas">Guipuzcoan Company of Caracas</a></li> <li><a href="/wiki/Royal_Company_of_the_Philippines" title="Royal Company of the Philippines">Royal Company of the Philippines</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Swedish</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Swedish_Africa_Company" title="Swedish Africa Company">Swedish Africa Company</a></li> <li><a href="/wiki/Swedish_East_India_Company" title="Swedish East India Company">Swedish East India Company</a></li> <li><a href="/wiki/Swedish_Levant_Company" title="Swedish Levant Company">Swedish Levant Company</a></li> <li><a href="/wiki/Swedish_South_Company" title="Swedish South Company">Swedish South Company</a></li> <li><a href="/wiki/Swedish_West_India_Company" title="Swedish West India Company">Swedish West India Company</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Danish</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Danish_Asiatic_Company" title="Danish Asiatic Company">Danish Asiatic Company</a></li> <li><a href="/wiki/Danish_East_India_Company" title="Danish East India Company">Danish East India Company</a></li> <li><a href="/wiki/Danish_West_India_Company" title="Danish West India Company">Danish West India Company</a></li> <li><a href="/wiki/Royal_Greenland_Trading_Department" title="Royal Greenland Trading Department">Royal Greenland Trading Department</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Russian</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Russian-American_Company" title="Russian-American Company">Russian-American Company</a></li></ul> </div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div> <ul><li><span class="noviewer" typeof="mw:File"><span title="Category"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/16px-Symbol_category_class.svg.png" decoding="async" width="16" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/23px-Symbol_category_class.svg.png 1.5x, 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