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
please explain these topic to me in detail as soon as possible so that i can make my assignment accordingly

Government optimal long run policy - Nash equilibrium The government's optimal long run policy is associated with policy coordination at point C. However, as in the static mod

Discuss about the International Court of Justice as the organisation of United Nations. The International Court of Justice (ICJ): Its major functions are to settle legal

Officials defended China's efforts to stop rampant copying of movies and other goods, saying Thursday that 4,322 people had been convicted of product piracy last year and promising

What are remedies available under equity law? Remedies available under equity law are as given below: • Exact performance (forced to execute task) • Injunction (stopped t

When was concept of refugee expanded Refugee law encompasses international legal instruments including the following : The 1951 United Nations Convention relating to the Status

describe what happends when a government agency proposes a rule.Provide recommendations to Crump for submitting responses to the EPA''s proposed rule. explained whether Crump shoul

Articles of Partnership - Partnership Law However a partnership need not be formed through written agreement, it is accustomed for 'Articles of Partnership' for be drawn up, s

Question 1: (i) Distinguish between industrial relations and employee relations. (ii) State the environmental factors that affect employee relations. (iii) Give five r

QUESTION 1 Give an account of the distinct methods according to which information can be collected for policy analysis QUESTION 2 "Policy Evaluation marks the final sta