B ( Parent Company ) is dwelling of three stockholders. which are managers of B & A ; A ( Mr Whitehouse & A ; Mr Hick= 3000 portions and C= 7000 portions ) . B was in debt with C ( Vendor Company ) . amounting to ?93000. For the full refund of debt in B. C agreed to reassign it’s portions to managers of B & A ; A at par value. provided if liability to them is to the full discharged. So. managers of B & A ; A arranged A ( Subsidiary ) to pay for the debt. Consequently. this portion transportation made managers of B & A ; A as the exclusive stockholders of B. Subsequently. A and B went into settlement.
The murderers took action against C and managers of B & A ; A. on behalf of A for the return of the ?93000. Issue: Whether Armour Hick Northern Ltd ( subordinate ) has given a fiscal aid to Armour Trust Ltd through the refund of debt ( ?93000 ) . for the intent or in connexion with the purchase of the portions in Armour Hick & A ; Partners Ltd ( parent ) . in respects of purchase by managers of both companies? Principals: Section 67 ( 1 )
Covering by a company in its ain portions
Except every bit is otherwise expressly provided by this Act no company shall give. whether straight or indirectly and whether by agencies of a loan. warrant or the proviso of security or otherwise. any fiscal aid for the intent of or in connexion with a purchase or subscription made or to be made by any individual of or for any portions in the company or. where the company is a subordinate. in its keeping company or in any manner purchase. trade in or impart money on its ain portions.