Companies limited by guarantee: prohibiting non-member participation in divisible profits and treating share-like divisions as share capital. Section 37 provides that in a company limited by guarantee without share capital, any memorandum, article or resolution purporting to give persons rights to participate in divisible profits otherwise than as members is void; and any provision purporting to divide the undertaking into shares or interests is to be treated as a provision for a share capital even if nominal amount or number is unspecified.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Companies limited by guarantee: prohibiting non-member participation in divisible profits and treating share-like divisions as share capital.
Section 37 provides that in a company limited by guarantee without share capital, any memorandum, article or resolution purporting to give persons rights to participate in divisible profits otherwise than as members is void; and any provision purporting to divide the undertaking into shares or interests is to be treated as a provision for a share capital even if nominal amount or number is unspecified.
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