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

Analyse the major changes brought to industrial relations, Question 1: ...

Question 1: Critically analyse the major changes brought to Industrial Relations by the Employment Relations Act 2008? Question 2: Write short notes on the followings:

Misfeasance by the auditors, Misfeasance by the auditors: However it i...

Misfeasance by the auditors: However it is not sufficient to describe that the frauds must have been detected whether the entries in the books had been put mutually in a way w

Non-accepting shareholders, Non-accepting shareholders: Acceptance on ...

Non-accepting shareholders: Acceptance on the required scale must be obtained within a maximum of four months from the date of the offer.  The position then is that: (a) at

Explain clause compromis and clause compromissoire, Question 1: Define,...

Question 1: Define, distinguish and discuss the limits of each of the following mechanism of Alternative Dispute Resolution, namely; (a) Conciliation; and (b) Negotiation.

Position in relation to the company - company secretary, Position in Relati...

Position in Relation to the Company: In 1882 Lord Esher in Barnett, Hoares & Co v South London Tramsways Co stated that: "A secretary is a mere servant; his position is tha

Safety and health officer in an organization, QUESTION 1 What are the d...

QUESTION 1 What are the duties of an Occupational, Safety and Health officer in an organization? QUESTION 2 Section 47 (1) of the Occupational, Safety and Health Act st

Several rules for fraudulent trading, Several rules for Fraudulent trading:...

Several rules for Fraudulent trading: Various rules have been established to determine what is fraudulent trading: (a) Only persons who take the decision to carry on the co

Concept of authority - agency law, Concept of Authority - Agency Law W...

Concept of Authority - Agency Law Whether this is the oral or written permission conferred on a person through another to do a particular thin.  Thus it is a factual concept a

What are the origins of open method of coordination, What are the origins o...

What are the origins of open method of coordination The origins of the OMC lie in the Lisbon European Council (March 2000), which made its introduction as the primary means of

Correspond with description - terms used in contract, Correspond With Descr...

Correspond With Description - Terms Used In Contract With S.15 provides that, where goods are sold through description whether is an implied matter that the goods correspond w

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