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Gray’s Timber Products Ltd has reached the Supreme Court. KOMAL SAILY reports the proceedings
- KEY POINTS
- Subscription rights are class rights.
- Need to consider legislative intention.
- The director’s shares are no different.
- The shares are convertible securities.
- Too late to consider an alternative point.
The long-running Gray’s Timber Products Ltd case was recently heard by the Supreme Court. To recap the facts: G a director of Gray’s Timber Products held 5% of the total issued share capital of Gray’s Group Ltd (GGL) but was entitled under the terms of a subscription agreement to receive approximately 25% of the sale proceeds which was significantly more per share than any other shareholder.
When the company’s entire share capital was sold to an unconnected third party Jewson Ltd in November 2003 and G was paid 25% of the proceeds HMRC determined...
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