Opinion ID: 302778
Heading Depth: 2
Heading Rank: 2

Heading: Opportunity for a full and fair trial abroad.

Text: 298 The Zambian Companies Ordinance does not on its face grant standing to shareholders, as distinguished from creditors, to object to a reduction of capital of their corporation. However, the Zambian Ordinance was drawn from the British Companies (Consolidation) Act of 1908, and is similar to the current English statute, the Companies Act of 1948. The Companies Act also does not purport on its face to vest standing in shareholders to object to a reduction of capital, but it has long been held that the courts must be solicitous of the rights of shareholders. 63 The appropriate method for a shareholder to object to a reorganization would be to appear at the hearing. 64 299 That the High Court of Zambia rendered its judgment within three hours from the time the proceeding commenced does not demonstrate that a full and fair hearing was not held in view of the fact that the court had all of the materials, including the complete record of the proceedings below, for consideration well in advance of the hearing date. To some extent, the brevity of the proceedings was attributable to the fact that no one appeared to object to the amalgamation. That the decree was, in effect, entered by default does not automatically vitiate it. Restatement (Second) of Conflicts, Sec. 98, Comment i (1971); see Somportex Ltd. v. Philadelphia Chewing Gum Corp., supra. 300