Ddisadvantages - mergers and winding up, Business Law and Ethics

Assignment Help:

Ddisadvantages - mergers and winding up:

The disadvantages of s.280 are that cash may have to be provided to pay off creditors and dissenting members or alternatively the sale may have to be abandoned. Secondly, the company must go into liquidation which is an irreversible process. But s.280 procedure is obligatory in the situation to which it relates.  It may be preferable to make the desired reconstruction in some other way.  For example the company to which the business is to be transferred might make a take-over bid (using s.210 to achieve 100 per cent success) for the share capital of the company whose business it wishes to acquire. When the latter company is a wholly owned subsidiary there is no procedural difficulty in transferring its business to the holding company. There is no obligatory cash alternative in a s.210 transaction though it is sometimes provided as an extra inducement (paragraph 26 above).

 The advantage of transferring a business from one company to another (with the same shareholders in the end) is that by this means the business may be moved away from a company with a tangled history to a new company which makes a fresh start. As explained (paragraph 6(b) above) this procedure can also be used to effect a merger of two companies each with an existing business.


Related Discussions:- Ddisadvantages - mergers and winding up

What do you mean by electrolysis, Q. What do you mean by Electrolysis? ...

Q. What do you mean by Electrolysis? In electro refining, the impure metal is taken as the anode and a strip of pure metal coated with a thin layer of graphite is made .the cat

Illustration of business law and ethics, Myra, another student, was very ...

Myra, another student, was very unhappy with her grade on the midterm. The following week, she arrived at the class about 20 minutes early and waited for the instructor t

Explain the need for rules in interpreting statutes, Question 1: (a) I...

Question 1: (a) In the Mauritian Legal System, there is a hierarchy of courts. Describe the various courts. (b) State and critically examine the features of the 5 main sour

Family and medical leave act, Family and Medical Leave Act: There is a...

Family and Medical Leave Act: There is a split among the federal circuit courts of appeal on whether or not public employees/officials may be considered "employers" and theref

What are the organisations made up by united nations, What are the organisa...

What are the organisations made up by United Nations? The United Nations was set up to make international public law after the Second World War. This is represented by nearly e

What is the meaning of remuneration, QUESTION 1 Explain the meaning of ...

QUESTION 1 Explain the meaning of ‘constructive dismissal' with reference to appropriate case law QUESTION 2 (a) What is the meaning of remuneration? (b) What type o

Capacity - element of contract, Capacity - Element of Contract Capac...

Capacity - Element of Contract Capacity to Contract However 'capacity' may be described like the legally documented right of a person to enter with a legally binding ag

Unity and continuity of domicile, Unity and continuity of domicile Co...

Unity and continuity of domicile Conversely S.10 of the Act provides such no person may have more than one domicile at any one time and no person shall be deemed for be witho

Tort laws and the environment, Role of the Courts The role of the court...

Role of the Courts The role of the court system in Canada varies. Due to the numerous jurisdictions and different government levels involved, the courts are often asked to inte

I need essay writing help, I am looking for essay writing help in topic "Ec...

I am looking for essay writing help in topic "Economic Crisis in Europe"

Write Your Message!

Captcha
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!

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