User Account

All Pages

What power does nemo have to issue new shares

Assignment Help Accounting Basics
Reference no: EM132759834

Nemo Seafood International Pty Ltd ("Nemo") operates a seafood export and processing business. The directors of Nemo are Marlin and Dory. There are 2,500 issued shares in Nemo, the majority owned by Lake Harbour Pty Ltd, a company also owned and controlled by Marlin and Dory. The day-to-day operation and management of Nemo were undertaken by Marlin and Nemo's operations manager, Nigel. Nigel is recommending that Nemo enter into a strategic alliance (merger) with its rival, Jacques Fish Markets (JFM). Under the terms of the merger: (a) Nemo is to issue Jacques, the owner of JFM, with 1,500 new shares, which will represent 3/8 (37.5%) of the total issued shares in the company. Jacques' shares will carry superior rights with respect to voting, dividends and repayment of capital than the ordinary shares already held by Lake Harbour and the other shareholders. (b) In return, Jacques will transfer all of his shares in JFM to Nemo. (c) From its profit and loss account, JFM will pay a dividend to Nemo, but payable directly to Nemo's shareholders.
Should the existing members of Nemo have any concerns with this proposal? Specifically, consider:

Problem i) As Lake Harbour is the majority shareholder of Nemo, outline the extent to which it could influence the day-to-day management of Nemo.

Problem ii) Is it legal for JSM to pay a dividend direct to Nemo's shareholders?

Problem iii) What power does Nemo have to issue new shares?

Problem iv) Should members' approval have been first obtained before the new shares in Nemo are issued to Jacques?

Reference no: EM132759834

Questions Cloud

Determine minimum three key indicators of health : Discover which agencies, in your state, are responsible for public health of citizens. Research if there are centralized or decentralized management of state.
Performance appraisal methods : What are some various commonly used performance appraisal methods?
How many equivalent units are there for this period : If there are 5,000 units in beginning work in process inventory (30% complete), how many equivalent units are there for this period
Steps involved in statistical forecasting process : What are the steps involved in the statistical forecasting process? Provide at least 3 examples of statistical analysis tools used for forecasting.
What power does nemo have to issue new shares : As Lake Harbour is the majority shareholder of Nemo, outline the extent to which it could influence the day-to-day management of Nemo.
Develop your vision of the ideal health care system : Develop your vision of the ideal health care system. List some of the characteristics that constitute such a system. What would be the goal or goals of your.
Explain the classification of the building with the relevant : Explain the classification of the building with the relevant MFRS if The bottom two floors of the building were capable of being sold in a separate transaction.
Integrated marketing strategy : Describe the target market, including buyer motivations, demographics, and psychographics.
Publicly traded entity in any sector : You will select a publicly traded entity in any sector and discuss relationship between risk and reward for variety of situations.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Adjustment made to cost of goods sold

At December 31, balances in Overhead are as follows: Lott Company-debit $1,500, Perez Company-credit $900. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold.

  Net investment in a foreign entity

The gain or loss on the effective portion of a U.S. parent company's hedge of a net investment in a foreign entity should be treated as:

  Two guys opened an ice cream shop in eugene it was a big

two guys opened an ice cream shop in eugene. it was a big success so they decide to open a ice cream shops in many

  What is the debt ratio for apple in the current year

What is the debt ratio for Research In Motion in the current year and for the prior year?

  What was the amount of the revised estimated total project

What was the amount of the revised estimated total project construction costs at the end of 2015?

  Unrelated business income tax

The local garden club, an exempt organization, had gross unrelated business income during the year of $15,000. Its costs associated with this income were $9,800. What is its unrelated business income tax?

  What amount would appear on the balance sheet

What amount would appear on the Balance Sheet, The bank collected for Rawlins Company

  What are closing entries for sage co on december

Presented below are selected account balances for Sage Co. as of December 31, 2017. What are closing entries for Sage Co. on December 31, 2017

  Open the given ledger accounts

Santo Birch opens a Web consulting business called Show-Me-the-Money and completes the following transactions in its first month of operations.

  What are the tax consequences of the transfer of greenacre

Gail and Harvey formed the GH Partnership (a general partnership). Gail contributed $400,000 of cash and has a one-third interest in profits and loss.

  Does the company have an ethical duty to disclose the breach

If the employee attempting to sell the non-public information of customers on the "dark web, Does the company have an ethical duty to disclose the breach

  Basics of economic entity concept

Under the economic entity concept, which of the following statements is true?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd