1933 (1) TMI 19

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....ts, said: The question arises whether Clause 7 of the deed of guarantee is binding on the company. The instant that any sum is paid by the defendant to the trustee for the preference shareholders, Clause 7 according to its terms, authorizes the defendant to commence an, action for repayment of the sum, as if he were a creditor of the company entitled to rank in the same position as any other credi....

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....ce the defendant in the position of a creditor who is entitled to rights against the company quite different from the right which a preference shareholder has to payment of dividends out of profits, according to the company's articles of association and distinct from the right of a preference shareholder in a winding-up. In my opinion, therefore. Clause 7 is wholly ultra vires and void. On the oth....