Right to prior repayment:
Therefore this was not variation of class rights since the existing preference shareholders had the same number of shares (and votes at a class meeting) as before.
(a) to subseparate shares of another class with the incidental effect of increasing the voting strength of that other class:
GREENHALGH v. ARDERNE CINEMAS
The company had two classes of ordinary shares, i.e. 50p shares and 10p shares. Every share carried one vote. A resolution was passed to subdivide each 50p share into five 10p shares, thus multiplying the votes of that class by five.
Held:
The rights of the original 10p shares had not been varied since they still had one vote per share as before.
(b) to return capital to the holders of preference shares which carry no right on a winding up to share in surplus assets but merely a right to prior repayment;
RE SALTDEAN ESTATE CO. LTD.
The company had ordinary shares and preference shares. The preference shareholders were entitled to the prior return of capital on a winding up but nothing more. The company proposed to repay the preference shareholders with the court sanction and return their capital to them so that the class of preference shareholders would be eliminated.