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Companies Act 2006

Changes over time for: Section 634

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634Right to object to variation: companies without a share capitalU.K.
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(1)This section applies where the rights of any class of members of a company are varied under section 631 (variation of class rights: companies without a share capital).

(2)Members amounting to not less than 15% of the members of the class in question (being persons who did not consent to or vote in favour of the resolution for the variation) may apply to the court to have the variation cancelled.

(3)If such an application is made, the variation has no effect unless and until it is confirmed by the court.

(4)Application to the court must be made within 21 days after the date on which the consent was given or the resolution was passed (as the case may be) and may be made on behalf of the members entitled to make the application by such one or more of their number as they may appoint in writing for the purpose.

(5)The court, after hearing the applicant and any other persons who apply to the court to be heard and appear to the court to be interested in the application, may, if satisfied having regard to all the circumstances of the case that the variation would unfairly prejudice the members of the class represented by the applicant, disallow the variation, and shall if not so satisfied confirm it.

The decision of the court on any such application is final.

(6)References in this section to the variation of the rights of a class of members include references to their abrogation.

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