Ooregum Gold Mining Co of India Ltd v Roper
1892 · [1892] AC 125
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- Facts
- A company issued preference shares of one pound each credited as fifteen shillings paid, so that holders would pay only five shillings.
- Issue
- Could a company issue shares at a discount?
- Held
- No. The issue at a discount was beyond the company's powers, because the capital stated must be raised.
- Principle
- Shares may not be issued at a discount to their nominal value, except as statute allows.
- Why it matters
- It is a pillar of .
Words and Latin in this note
- Capital maintenance
- The rules that protect a company's share capital for its creditors, such as the bar on issuing shares at a discount (Ooregum) and on returning capital except as the Act allows (Trevor v Whitworth). Open the note.
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