Benefits of non-accepting shareholders, Business Law and Ethics

Benefits of non-accepting shareholders:

The minority whose shares are acquired compulsory under s.210 are entitled to all the benefits included in the original offer and accepted by the holders of 90 per cent or more of the shares.  Company A must not only pay the same price (or other consideration); it must repeat all other inducements such as a cash alternative.  When Company A offers its own shares in exchange for shares of Company B it is a common practice to make the offer more attractive by arranging with a third party that the latter will make a simultaneous offer (for a limited period only) to purchase from shareholders of Company B their consideration shares (allotted by Company A) if they do not wish to retain them.  A holder of shares of Company B then has the choice of (i) retaining his new shares in Company A or (ii) selling them (the "cash alternative") immediately at a stated price to a third party.  When s.210 is used to acquire the outstanding shares of Company B the bidder (Company A) must arrange for a cash alternative to be provided since that was part of the terms (although it came from a third party) which induced a high level of acceptance: Re Carlton Holdings (1971).

Posted Date: 1/15/2013 4:30:10 AM | Location : United States







Related Discussions:- Benefits of non-accepting shareholders, Assignment Help, Ask Question on Benefits of non-accepting shareholders, Get Answer, Expert's Help, Benefits of non-accepting shareholders Discussions

Write discussion on Benefits of non-accepting shareholders
Your posts are moderated
Related Questions
Removal:             Article 107 provides that the managing director's "appointment shall be automatically determined if he cease from any cause to be a director". However it

Unincorporated Associations:                 A group of people may come together in order to pursue or  promote a common purpose or activity but without going through the vari

State in brief about the term - Reputations Reputations can be defined as the actions an agent and expected to take. If he takes it up, he establishes his reputation or otherwi

Define the Conceptual strength of stages model The stages model has a number of conceptual strengths. First, it emphasizes a process of policy making that cuts across and bridg

Patrick works in the same office as Marian and they do not work well together. One day, Marian got credit for a job well done and Patrick got angry over it. He walked int

Purpose of the rule: It has been stated by various English judges that without the rule in Foss v Harbottle (i)            There would be futile actions.  A court order

What are parliamentary procedures for passing legislation? Parliamentary procedure for passing legislation: A statute can simply be part of law while this has passed the

The phrase called information overload may be a bit of a problem because it used so often, but the fact remain that managers & support staff are merged in information of all kinds.

Question : In July 2007 Amin sent a brochure of a hotel he was running and managing to Sam, a travel agent and included the following statement: "The hotel provides a range of

What is Policy Clustering Adoption of policies is motivated by the observation that nation-states, or some other jurisdictional unit, choose similar institutions within a fairl