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

What do you understand by collective bargaining, QUESTION 1 One of the ...

QUESTION 1 One of the main ingredients of a system of collective bargaining is the right to join and participate in the activities of a trade union. What is the extent of this

Trade unions - unincorporated associations, Trade Unions:             ...

Trade Unions:                   Trade Unions are registered under s.11 of the Trade Unions Act 1952 with the primary object of regulating the  relations between employees and

Fitness for purpose - sales of goods, Fitness for Purpose - Sales of Goods ...

Fitness for Purpose - Sales of Goods However that goods such are bought for a particular purpose that are reasonably fit about that purpose:(S.16 (a))like Whether this conditi

Determine the cash flows of the swap, Question : (a) Show how a party c...

Question : (a) Show how a party can terminate a forward transaction prior to maturity? (b) Suppose a forward Rate Agreement that: Expires in 30 days Is based on a n

What are the ways by which states create international law, Different ways ...

Different ways through which States create International law There are different ways through which States create International law. International conventions mentioned under a

What is the unclos 1982, The UNCLOS 1982 The UNCLOS 1982 does not stop ...

The UNCLOS 1982 The UNCLOS 1982 does not stop at gauging the limits of the territory of coastal states. Other features of the Convention include the right of transit of landloc

Name the hallmark events in the evolution of nuclear law, Some of the hallm...

Some of the hallmark events in the evolution of nuclear law are: a.   1945 - The United States tested its first nuclear bomb. b.   1945 - Hiroshima and Nagasaki were attacke

Remedies of the buyer - sales of goods, Remedies of the Buyer - Sales of Go...

Remedies of the Buyer - Sales of Goods (a)Damages for non-delivery Section number 51 (1) provides that whether the seller wrongfully neglects or refuses to deliver the go

Explain the united nations convention on the law of the sea, United Nations...

United Nations Convention on the Law of the Sea The rights over the sea were extended by the United Nations Convention on the Law of the Sea (UNCLOS) adopted in 1982. The UNCLO

Avoidance of floating charges, Avoidance of Floating Charges: Under s....

Avoidance of Floating Charges: Under s.314 liquidation automatically renders void any floating charge created within the period of 12 months before commencement of liquidation

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