Led by Lord Macnaghten Simulacrum
About this course
Share capital in practice. Lord Macnaghten Simulacrum covers the classes of share and their rights, the allotment process (directors' authority, pre-emption rights), transfer and transmission (stock transfer forms, stamp duty, CREST), and the restrictions on a company dealing with its own shares — rooted in Trevor v Whitworth [1887] and codified in the Companies Act 2006.
Part of the Company and Partnership Practice series, built to the CILEX Level 6 Unit 16 specification (2026).
Led by Lord Macnaghten Simulacrum
The question
What types of share can a company issue, how are shares allotted and transferred, and what restrictions apply to a company buying back its own shares or reducing its capital? This module covers share classes (ordinary, preference, redeemable), allotment authority (ss549-551), pre-emption rights (s561), the transfer process (stock transfer form, stamp duty, CREST), and the Trevor v Whitworth principle on capital maintenance. The closing exercise advises on a share issue.
Outcome
The student can explain share types, describe the allotment and transfer process, analyse the restrictions on capital reduction, and advise on an appropriate share issue for a given scenario. (Issue of share capital)
Sub-units