Ddisadvantages - mergers and winding up, Business Law and Ethics

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.

Posted Date: 1/15/2013 4:36:38 AM | Location : United States







Related Discussions:- Ddisadvantages - mergers and winding up, Assignment Help, Ask Question on Ddisadvantages - mergers and winding up, Get Answer, Expert's Help, Ddisadvantages - mergers and winding up Discussions

Write discussion on Ddisadvantages - mergers and winding up
Your posts are moderated
Related Questions
Express and Implied terms of contract Express terms However the terms of a contract are said to like "express terms" whether the parties themselves adverted to them on

The Reports: i) An auditor's report showing:                    a) Profits or losses in each of the last FIVE years.                    b) Rate of dividend during the la

Creditors meeting - winding up: The creditors' meeting is convened for the same day at a later time than the members' meeting or it is held the following day.  One of the dire

Provisional Contracts - Law of Contract However occasionally an agreement may be illustrated through the parties thereto as being as "a provisional agreement" until a legally

Assignments should be submitted on or before the due date. Zero mark will follow late submission of an assignment unless you have an acceptable reason approved by the instructor.

State Article 2 of Universal Declaration of Human Rights Article 2: 'Everyone is  entitled  to  the rights and freedoms set  forth in  this Declaration...' - This clause iden

Arbitral Award However the decision of the arbitral tribunal is referred to like an arbitral award. Therefore the terms of employment really require the arbitrator that must m

Compensation for Removal: Subsection (6) provides that nothing in s.185 shall be taken as depriving a removed director of compensation or damages payable to him in respect of

Administrative Function of Chief Justice Where, he is the principal administrative officer of the judiciary And where, he is the chairman of the Judicial Service Commi

What is the Flexible Exchange Rates With a fully flexible exchange rate adjustment toward the long run equilibrium occurs via a change in relative prices. This effect is shown