C/L/164. Corporate Regulation and Crime

In this problem question there are three sets of concerns, the first surrounds the actions of Hilary and Huw in respect to their dealings that bring personal benefit, the removal of pre-emption rights and reduction of share capital for Discreet Dealers shareholders. Then there are the insider dealings of Huw in his information to Paul. Finally, there are the secured loans that Hilary placed on the company, with a floating charge on the company that prohibited another without notification to Payback Bank and how this effects the insolvency proceedings and the payment back to creditors. This discussion is going to separate into three sections, the company law surrounding the duty of directors and share capital changes; the implications of insider dealings; and the insolvency proceedings.