High Court of Australia

Articles, Art 3(1).

Articles, Art 3(2)(a), (3)(b), (4)(a), (5)(a).

At trial, Hamilton AJ noted that the parties proceeded on the basis that the subject shares were issued in 1971, but that it was not clear on the evidence when the other issued shares were issued: Beck v Weinstock (2010) 241 FLR 235 at 237 [13].

The arrangements may have been inspired by Robertson v FCT (1952) 86 CLR 463 ; [1952] HCA 71, which concerned a scheme to alter a shareholder's rights upon his death so that the value of his shares was significantly reduced for estate duty purposes.

Weinstock v Beck [2013] HCA 14 at [23].

(2010) 241 FLR 235 at 241 [33].

Weinstock v Beck (2011) 252 FLR 462.

[2012] HCATrans 034.

(2010) 241 FLR 235 at 239-240 [23]-[28]. His Honour followed the reasoning of Barrett J in Re Capel Finance Ltd (2005) 52 ACSR 601.

(2010) 241 FLR 235 at 239 [23]-[24].

(2010) 241 FLR 235 at 240 [29].

(2011) 252 FLR 462 at 478 [146].

(2011) 252 FLR 462 at 478 [147].

(2011) 252 FLR 462 at 478 [148].

(2011) 252 FLR 462 at 478 [149].

(2011) 252 FLR 462 at 471 [75].

(2011) 252 FLR 462 at 472 [82]. An observation not always strictly accurate: see Central Piggery Co Ltd v McNicoll and Hurst (1949) 78 CLR 594 especially at 599-600 per Dixon J in relation to the distinction between allotment and issue; [1949] HCA 19. Lindley in A Treatise on the Law of Companies, 5th ed (1889) at 394 said that unissued shares "belong to the company", citing York and North-Midland Railway Co v Hudson (1845) 16 Beav 485 [51 ER 866].

(2011) 252 FLR 462 at 472 [83].

(2011) 252 FLR 462 at 473 [96].

Memorandum, cl 2(c).

Articles, Art 3(4)(b).

Articles, Art 3(4)(e).

Articles, Art 3(4)(f).

Articles, Art 3(4)(c).

Articles, Art 3(4)(d).

Evans, British Corporation Finance 1775-1850: A Study of Preference Shares, (1936) at 150.

Evans, British Corporation Finance 1775-1850: A Study of Preference Shares, (1936) at 75.

Evans, British Corporation Finance 1775-1850: A Study of Preference Shares, (1936) at 152-154.

A number of early 19th century examples are cited in Evans, British Corporation Finance 1775-1850: A Study of Preference Shares, (1936) at 74-75.

The first general provision which provided for the issue of redeemable preference shares was s 46 of the Companies Act 1929 (UK). Sections 13 and 14 of the Companies Clauses Act 1863 (UK) provided for the issue of preference shares for companies where such issues were authorised by special Acts of Parliament.

[1949] AC 462 at 488.

Webb v Earle (1875) LR 20 Eq 556.

In re Eclipse Gold Mining Co (1874) LR 17 Eq 490, cited in Palmer, Conveyancing and Other Forms and Precedents Relating to Companies, (1877) at 267.

Lindley, A Treatise on the Law of Companies, 5th ed (1889) at 396-397.

Palmer, Conveyancing and Other Forms and Precedents Relating to Companies, (1877) at 267.

Palmer, Conveyancing and Other Forms and Precedents Relating to Companies, (1877) at 252-259.

(1890) 44 Ch D 28.

(1890) 44 Ch D 28 at 36.

Palmer, Conveyancing and Other Forms and Precedents Relating to Companies, (1877) at 252.

[1894] AC 399.

[1894] AC 399 at 416.

[1894] AC 399 at 416-417, overruling Hutton v Scarborough Cliff Hotel Co (1865) 2 Dr & Sm 521 [62 ER 717].

[1895] 1 Ch 691.

[1897] 1 Ch 361 at 370. Lindley LJ followed Lord Macnaghten's observation in British and American Trustee and Finance Corporation v Couper [1894] AC 399 at 416-417.

Turnbull & Jones Ltd v Turnbull (1913) 32 NZLR 670 at 672 per Sim J.

(1931) 45 CLR 82 ; [1931] HCA 16.

(1931) 45 CLR 82 at 90.

Campbell v Rofe (1932) 48 CLR 258 at 264 ; [1933] AC 91 at 98.

(1932) 48 CLR 258 at 264 ; [1933] AC 91 at 98-99.

1961 Act, s 61(1).

1961 Act, s 61(2).

1961 Act, s 61(5).

Comptroller of Stamps (Vic) v Ashwick (Vic) No 4 Pty Ltd (1987) 163 CLR 640 at 649 ; [1987] HCA 60 (a case concerning the similarly worded s 120 of the Companies (Victoria) Code and the question whether redemption was a "reduction of capital" for the purposes of an exemption provision in the Stamps Act 1958 (Vic)).

Companies Act 1981 (UK), s 45(2).

1961 Act, s 66(1).

Companies (Application of Laws) Act 1981 (NSW), ss 6, 10(2)(d).

(1990) 169 CLR 482 ; [1990] HCA 2.

Corporations (New South Wales) Act 1990 (NSW).

Section 4 read with Sch 4, Pt 1.

Schedule 1, item 11, inserting s 1427 into the Corporations Law.

Explanatory Memorandum to the Company Law Review Bill 1997 (Cth) at [11.6].

Schedule 5, item 10, inserting s 254C into the Corporations Law.

Explanatory Memorandum to the Company Law Review Bill 1997 (Cth) at [11.22]-[11.23].

See the reference in Weinstock v Beck [2013] HCA 14 at [36] to the consideration of the 1998 amendment by Campbell JA in Beck v LW Furniture Consolidated (Aust) Pty Ltd (2012) 265 FLR 60 at 96-100 [159]-[174].

2001 Act, s 124(1)(a).

2001 Act, s 254A(1)(b).

2001 Act, s 254J(1).

2001 Act, s 254J(2).

See Simonson, The Law Relating to the Reduction of the Share Capital of Joint Stock Companies, 2nd ed (1924).

Companies Act 1867 (UK), ss 9-20.

(1887) 12 App Cas 409.

(1887) 12 App Cas 409 at 423-424 per Lord Watson. See also Davis Investments Pty Ltd v Cmr of Stamp Duties (NSW) (1958) 100 CLR 392 at 413 per Kitto J; [1958] HCA 22; Australasian Oil Exploration Ltd v Lachberg (1958) 101 CLR 119 at 132 ; [1958] HCA 51.

Companies Act 1961 (NSW), s 14(1).

Section 18(1)(c).

Section 18(1)(i).

Articles of association, Art 3(1).

Beck v Weinstock (2010) 241 FLR 235 at 240 [29].

Weinstock v Beck (2011) 252 FLR 462.

See ss 20-21 of the Companies (Application of Laws) Act 1981 (NSW), s 126 of the Corporations Law of New South Wales (being s 82 of the Corporations Act 1989 (Cth) as given effect by the Corporations (New South Wales) Act 1990 (NSW)) and, following the amendments made by the Company Law Review Act 1998 (Cth), ss 1362CA-1362CB of the Corporations Law of New South Wales together with ss 57A(1), 1378(1) and 1408 of the 2001 Act.

See, for example, Re Dronfield Silkstone Coal Co (1880) 17 Ch D 76; Trevor v Whitworth (1887) 12 App Cas 409; Re Almada and Tirito Co (1888) 38 Ch D 415; Ooregum Gold Mining Co of India v Roper [1892] AC 125; Welton v Saffery [1897] AC 299.

Notably s 61(7), which permitted application of the capital redemption reserve "in paying up un-issued shares of the company to be issued to members of the company as fully paid bonus shares".

cf s 254A(2) of the 2001 Act.

Subsequent forms of Australian corporations legislation have not contained any definition of preference share or any statement of the essential characteristics of a preference share.

Wallace and Young, Australian Company Law and Practice, (1965) at 252.

Re Sheffield Manufacturing and Plating Co Ltd (1951) 52 SR (NSW) 34 at 35 per Roper CJ in Eq.

cf Tongkah Compound NL v Meagher (1951) 83 CLR 489 at 493 per Dixon J; [1951] HCA 41.

Section 18(1)(c).

Section 62(1).

Section 64(1).

Section 65.

Section 66(1).

(2011) 252 FLR 462 at 477 [134]-[135].

Section 461(1)(d).

Section 222(1)(d).

Re Dicido Pier Co [1891] 2 Ch 354.

Section 114.

Section 119.

Section 120(2).

Section 117(2)(k)(i).

Section 136(1)(a).

Section 140(1).

Section 124(1)(a).

Section 254B(1).

Section 246B.

Section 246C(5).

Section 254A(1)(b).

Section 9.

Section 254G(1)(b).

Section 254G(1)(a).

Section 254G(2).

Australia, House of Representatives, Company Law Review Bill 1997, Explanatory Memorandum at [11.12].

(2005) 52 ACSR 601 at 605 [11].

Section 461(1)(d).