Form of reconstruction, Business Law and Ethics

Assignment Help:

Form of reconstruction:

Where one company transfers its undertaking (and assets) to another company in exchange for shares to be alloted direct or distributed to the members of the company, the company which makes the transfer must go into voluntary liquidation and the transfer must be approved by special resolution passed in general meeting.  The acquiring company may be a new company formed for the purpose.  There is then a change of company but the same shareholders as a group own the same business (through a company).  It is a form of reconstruction.  If however the acquiring company already has a business and a different group of members this method effects an amalgamation so  that the two groups of shareholders join together in holding the shares of a single company which owns both businesses (s.280).

A scheme of arrangement may be used in many different situations.  Essentially it is suitable for making a change in the rights of shareholders or creditors of an existing and continuing company.  But it can also be used to effect a take-over (as described in (a) above) or to carry out a reconstruction involving changes of company structure (s.207).


Related Discussions:- Form of reconstruction

Distinguish between the concepts of originalism and dynamism, Question 1: ...

Question 1: Discuss the main problems faced by judges when interpreting a piece of legislation. Question 2: A necessary evil': Would you agree with this definition of d

Suing and being sued, Suing and being Sued:            Because a compa...

Suing and being Sued:            Because a company is at law a different person altogether from its members it follows that a wrong to, or by, the company does not legally con

Define the meaning of lobbyists, Define the meaning of Lobbyists Lobbyi...

Define the meaning of Lobbyists Lobbyists place a premium on information. While framing their arguments; they often turn to research and analysis that supports the case they ar

Public law and private law, Public Law: Whether it contain of those fi...

Public Law: Whether it contain of those fields or branches of law  where such the state has an interest as the sovereign egg criminal law, administrative law, constitutional l

Define your point of view about international legal relation, Define your p...

Define your point of view about international legal relation. International legal relations: International law covers the matters which may occur between countries not li

Directors remuneration - company management, Directors' Remuneration: ...

Directors' Remuneration: For technical reasons the directors are not regarded as servants or employees of the company of that they are directors. Therefore  here they have no

Executions take place using a lethal injection, Most executions take place ...

Most executions take place using a lethal injection.  The company that manufactures the drug that is most used has now announced that it is choosing to no longer produce that drug.

How would you ensure that the code is effective, QUESTION 1 You are giv...

QUESTION 1 You are given the task to make a Code of Ethics for your organization (a) Describe a Code of Ethics (b) What are the different aspects/issues that you might in

Determine the term - cyclic majority voting, Determine the term - cyclic ma...

Determine the term - cyclic majority voting The cyclic majority voting, a problem first recognized by Marquis de Condorcet in 1785, the indeterminacy of voting process, has bee

Proposal to reduce the votes of preference shares, Proposal to reduce the v...

Proposal to reduce the votes of preference shares: In making this approach the courts have nonetheless kept the door open for action to deal with discrimination against a clas

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