Main advantages - mergers and winding up, Business Law and Ethics

Main advantages - mergers and winding up:

A scheme of arrangement under s.207 offers three main advantages:

(a)     it can be used in circumstances to which s.210 and s.280 do not apply.  As explained above it has only to be an "arrangement or compromise" of some sort with members or creditors;

(b)     in circumstances where s.207 is an alternative procedure a scheme of arrangement only requires approval by three quarters of the votes cast at each meeting.  This is a less stringent requirement than s.210 imposes since s,210 operates only if holders of 90 per cent of all the shares for which the offer is made accept the offer.  If there is doubt whether 90 per cent acceptance is obtainable a s.207 scheme is to be preferred.  But if (as in the Hellenic & General Trust Case - para 11 above) the court concludes that an identified minority has been denied the veto which s.210 would have given it is unlikely to give its approval under s.207.  Apart from technical points it would be unfair to do so;

(c)     the court order to implement the approved scheme under s.209(1) often saves substantial expense which could otherwise be incurred if the arrangement were effected in some other way.

Posted Date: 1/15/2013 4:13:44 AM | Location : United States







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

Write discussion on Main advantages - mergers and winding up
Your posts are moderated
Related Questions
What are the advantages of doctrine of judicial precedent? Advantages of doctrine of judicial precedent: a. Makes it more clearly in terms of chances of winning case should

Question 1: Local Government is generally seen as a system of getting various services run for the local community. What, in your view, are the other distinctive benefits t

Houghland, a passenger in one of McAnn's buses, had his suitcase stored in a luggage comp of the bus for a trip from Brisbane to Cairns. The suitcase was lost during the course of

Interpretation of Constitution - High Court After then under Section 67(1) of the Constitution gives that whether any question as to the interpretation of the constitution ari

Fiduciary Duties: The fiduciary duties of directors arising from their fiduciary relation to the company have been the subject of consideration in an enormous body of case law

Your first big case is a multiple murder. As defense attorney for SyKopath, you have come to the realization that he really did break into a couple's home and torture and kill them

Relief from Liability: Under s.402(1) the court has power in an action against an officer for breach of duty to grant relief where, although the officer is in breach, it appea

Gist of Lord Buckleys statement: The gist of Lord Buckley's statement, above, may be summarised as follows: The judges will not regard a transaction undertaken by a company as

Q. Show Recent developments in mitigating phoenix activity? Since these previous works, there have been significant developments in mitigating phoenix activity. Following Tr

Issue of additional preference shares: In the Bristol Aeroplane Case it was said of the issue of additional preference shares that:                    "the existing prefere