574. Right to object to variation: companies having a share capital
(1) This section applies where the rights attached to any class of shares in a company are varied under section 571 (variation of class rights: companies having a share capital).
(2) The holders of not less in the aggregate than 15% of the issued shares 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.
For this purpose any of the company’s share capital held as treasury shares is disregarded.
(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-
(a) 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
(b) may be made on behalf of the shareholders 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 shareholders 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 holders of a class of shares include references to their abrogation.