Anglo Petroleum Ltd v TFB (Mortgages) Ltd
Encyclopedia
Anglo Petroleum v TFB Ltd [2008] 1 BCLC 185 is a UK company law case concerning financial assistance
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, because the agreed payment merely reduced the shares’ value to £1, rather than assisting in the purchase of the shares.
Financial assistance
Financial assistance in law refers to assistance given by a company for the purchase of its own shares or the shares of its holding companies. In many jurisdictions such assistance is prohibited or restricted by law...
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Facts
A company in trouble, undergoing restructuring, undertook to pay back money after its acquisition. The seller of shares was only willing to sell if it received £15m. The company agreed to pay £15m to the parent, and the company’s shares were then sold for £1.Judgment
The court held this was not financial assistanceFinancial assistance
Financial assistance in law refers to assistance given by a company for the purchase of its own shares or the shares of its holding companies. In many jurisdictions such assistance is prohibited or restricted by law...
, because the agreed payment merely reduced the shares’ value to £1, rather than assisting in the purchase of the shares.