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

Proceedings at meetings - held, Proceedings at meetings - Held: Held: ...

Proceedings at meetings - Held: Held: The resolution as passed was invalid since it was not the special resolution of which notice had been given.  Even the retention of 321 p

Define the principle of prescription, Define the principle of prescription ...

Define the principle of prescription Prescription   (res  nullius-an  asset susceptible of acquisition but presently under the ownership or sovereignty of no legal person). Pr

International competition law, International Competition Law -  Select...

International Competition Law -  Select a specific industry or corporation and analyse the factors that determine a competitive or anticompetitive outcome; - Factors such a

Rules for purchase of own shares, Rules for Purchase of own shares: So...

Rules for Purchase of own shares: So now next despite the rule in Trevor V Whitworth a company may purchase or acquire its own shares in the following cases: a) Where it ac

Lapse of time - termination of an offer, Lapse of time - Termination of an ...

Lapse of time - Termination of an Offer Therefore offer of "lapses" that i.e. comes for an end robotically through operation about law whenever like: First is not

Defining phoenix activity in legislation, Defining phoenix activity in legi...

Defining phoenix activity in legislation Some stakeholders noted that defining phoenix activity in legislation could be beneficial if the definition was appropriate and it was

Business Ethics, do u have this book (richard t degeorge business ethics)

do u have this book (richard t degeorge business ethics)

Difference fixed and floating charge, Part A Companies can raise fina...

Part A Companies can raise finance by borrowing money and securing the debt by way of fixed or floating charge. Using case law in your answer explain what is the distinction b

Choice of name - name clause, Choice of Name - Name Clause: However, i...

Choice of Name - Name Clause: However, it might be relevant to note that the registrar of English companies, pursuant to his powers under the corresponding section of the Engl

Important points - contractual capacity of drunken persons, Important point...

Important points - Contractual Capacity of Drunken Persons Here the following points should be notice for as: Ratification Well a drunken man who enters into

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