Reconstruction - take-over bid, Business Law and Ethics

Assignment Help:

Reconstruction Under S.280:

The essential features of this type of reconstruction have been described at 8.2.1(b).  It is subject to several disadvantages and is little used.  But when a reconstruction takes this form s.280 procedure must be followed so that a dissenting minority does have the appropriate safeguard.

  This procedure applies to a company which is proposed to be or is in course of being wound up voluntarily.  A company in liquidation must dispose of its assets (other than cash) by sale in order to pay its debts and distribute any surplus to its members.  The special feature of a s.280 reconstruction is that the business or property of Company P is transferred to Company Q in exchange for shares of the latter company which are allotted direct or distributed by the liquidator to members of Company P.  Obviously the creditors of Company P will have to be paid in cash.  A dissenting minority of members of Company P can also require to be paid in cash.  Hence substantial sums may have to be found in cash.  This is one of the drawbacks.


Related Discussions:- Reconstruction - take-over bid

Distinguish an action in administrative law, QUESTION 1 Enumerate and c...

QUESTION 1 Enumerate and comment upon the number and nature of the grounds on the basis of which a citizen may challenge the decision of a public body. Illustrate your answer w

Disadvantages of arbitration, Disadvantages of Arbitration F...

Disadvantages of Arbitration First is, Arbitral awards have no precedential value as that they cannot be relied on in subsequent proceedings Second is, Arbitrati

State the term- gains from policy coordination, Gains from Policy Coordinat...

Gains from Policy Coordination The previous section has illustrated how large countries typically face positive or negative spill over effects associated with aggregate demand

Rule in turquands case, Rule in Turquands case: This statement can be ...

Rule in Turquands case: This statement can be reduced to two propositions which constitute what is compositely known as "the rule in Turquand's case", namely:; i. A person

The employment rights act provides, QUESTION The Employment Rights Act ...

QUESTION The Employment Rights Act provides- No employer shall terminate a worker's agreement for reasons related to the worker's misconduct unless the worker has been affor

What was the unsc resolution 1540, UNSC adopted resolution 1540 UNSC ad...

UNSC adopted resolution 1540 UNSC adopted resolution 1540 stating to take appropriate and effective actions against any threat to international peace and security caused by the

Introduction to business law, Part A Approach a small business owner an...

Part A Approach a small business owner and find out the following: a. What is the legal structure of their business? - Discretionary trust legal structure for an Accounti

Explain the air space and outer space, EXPLAIN THE AIR SPACE AND OUTER SPAC...

EXPLAIN THE AIR SPACE AND OUTER SPACE The scientific advancements made by mankind in the past 100 years are a lot more than the overall scientific development of last 1000 year

Group account form - accounts and audit, Group Accounts' form: S.151(...

Group Accounts' form: S.151(1) provides that the group accounts laid before a holding company shall be consolidated accounts comprising- (a)   like with a consolidated bala

Growth rate of the money supply in the domestic economy, Growth rate of the...

Growth rate of the money supply in the domestic economy On the horizontal axis is the growth rate of the money supply in the domestic economy, M. On the vertical axis is the gr

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