Brown v British Abrasive Wheel Co

Brown v British Abrasive Wheel Co [1919] 1 Ch 290 is a UK company law case, concerning the validity of an alteration to a company's constitution, which adversely affect the interests of one of the shareholders.

Having failed to effect this buying agreement, the 98% purposed to change the articles of association to give them the power to purchase the shares of the minority.

The proposed article provided for the compulsory purchase of the minority's shares on certain terms.

Astbury J held that the alteration was not for the benefit of the company as a whole and could not be made.

One reason for this was that there was no direct link between the provision of the extra capital and the alteration of the articles.