Form of reconstruction, Business Law and Ethics

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).

Posted Date: 1/15/2013 3:14:55 AM | Location : United States







Related Discussions:- Form of reconstruction, Assignment Help, Ask Question on Form of reconstruction, Get Answer, Expert's Help, Form of reconstruction Discussions

Write discussion on Form of reconstruction
Your posts are moderated
Related Questions
Define the term - policy elites A community of policy activists having somehow, a dominant position in policy process, called policy elites. They are guided by a substantive pro

what are the business organisation of objecetive

Part of the client's contract clearly states that negative publicity will not be tolerated on any actions connected to the temp agency. You know that this situation can harm both c

The policy process - Advocacy coalitions and Policy learning The mobilization of attention is what policy advocacy is primarily about. And the systematic mobilization of attent

General principles of Calls on contributories: If it is necessary to make calls on contributories the liquidator draws up a list "A" of contributories who were members at th

Brief theoretical conceptualization of  Multiple Equilibria We now come to a brief theoretical conceptualization which may give us a basis for choice of agenda or a policy prop

Explain UNSC Resolution 1624  and when it is passed The most-recent such resolution is UNSC Resolution 1624 passed in the year 2005. It states: "1. Calls upon all States to

Irene walked into a store carrying a bottle of soda she had purchased a few days earlier. While in the store, she opened the bottle of soda and was drinking it while she

Discuss the Role of agend setting in policy process In policy process, agenda setting plays a vital role. It helps determine what policies are chosen. When there are many compe

Growth rate of the money supply in the domestic economy On the horizontal axis is the growth rate of the money supply in the domestic economy, M. On the vertical axis is the gr