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
CREDITORS' VOLUNTARY WINDING UP: If no declaration of solvency is made and delivered to the registrar, the liquidation process is a creditors' voluntary winding up even if i

A company seeing the prevalence of HIV transmission due to unprotected sexual intercourse in a country and the societal norms preventing the open use of condoms sees an opportunity

EXPLAIN THE AIR SPACE AND OUTER SPACE The scientific advancements made by mankind in the past 100 years are a lot more than the overall scientific development of last 1000 year

EXCEPTIONS: A valid meeting may be constituted by the presence of one person in the following cases: (i)  If the meeting is an annual general meeting which was called by, o

District Magistrate's Court - Criminal Jurisdiction However Statute Law like as Miscellaneous Amendments Act 1983 amended the criminal jurisdiction of district magistrate's co

Q. What do you mean by Garnishee Orders? The ATO has the power to issue garnishee orders which allow recovery of debts from a person's bank account, wage or from people who owe

Several rules for Fraudulent trading: Various rules have been established to determine what is fraudulent trading: (a) Only persons who take the decision to carry on the co

Question 1: (a) Who is a director of a company and describe how he may be appointed. (b) What are the duties owed by directors under the Companies Act 2001? Question 2

Characteristics of Unincorporated Associations However these are associations of persons that who associate to promote a common and lawful purpose.  Thus now they have no lega

ali send an offer to bakar on 13/9/2010 by fax.on 14/9/2010 ali change his mind and revoke the offer by fax unfortunately bakar''s fax machine not working and ali call for bakar. b