Non-accepting shareholders, Business Law and Ethics

Non-accepting shareholders:

Acceptance on the required scale must be obtained within a maximum of four months from the date of the offer.  The position then is that:

(a) at the end of the four month period (not earlier than that even if 90 per cent acceptance is attained before the period expires) Company A may (but it need not do so if it does not wish-however see paragraph 25 below) serve notice on the non-accepting shareholders of its intention to acquire their shares on the same terms as have been accepted by the majority.  This notice may be given at any time within a two month period following the four month period;

(b) on receiving the notice from Company A each non-accepting shareholder of Company B has one month in which he may apply to the court to order that Company A shall not acquire his shares (see paragraphs 27-28 below);

(c) one month after serving notice on non-accepting shareholders (or if they apply to the court but fail then as the court has disposed of their application) Company A may require Company B as-


(i) to transfer the shares of its non-accepting shareholders to Company A, and

(ii) to receive the purchase consideration to hold in trust for the non-accepting shareholders.

By this means the outstanding shares are transferred without any further action on the part of the non-accepting shareholders.

Posted Date: 1/15/2013 4:21:14 AM | Location : United States

Related Discussions:- Non-accepting shareholders, Assignment Help, Ask Question on Non-accepting shareholders, Get Answer, Expert's Help, Non-accepting shareholders Discussions

Write discussion on Non-accepting shareholders
Your posts are moderated
Related Questions
Capacity - Element of Contract Capacity to Contract However 'capacity' may be described like the legally documented right of a person to enter with a legally binding ag

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 Who are refugees

Question 1: What do you consider to have been the significant factors in the historical development of urban local government in Mauritius? Question 2: Give an account

Evolution of Contracting  Contracts have evolved over centuries. It is a lawful binding relation between two or more parties. The contractual relationships can occur - from a s

PRESIDENT'S ASSENT: Under section 46(2) of the Constitution a Bill passed through the National Assembly must be presented to the President for his assent. However the Presid

QUESTION 1 Outline the procedure and criteria for the granting of recognition of representational status and recognition of negotiating rights QUESTION 2 (a) What do yo

Balance sheet: S.148(2) utilize the directors to prepare and lay before the company in simple meeting a balance sheet as at the date to such that the profit and loss account,

QUESTION 1 (i) What are the principles applicable regarding the unjustified termination of a contract of employment (ii) What would be your views regarding the legal issues

You and a friend form a corporation (Company) together selling refurbished handbags.  Your responsibilities are to decide sales and your friend's, Patty, is to manage operations an

LEGAL LIABILITY FOR LABORATORY ACCIDENTS IN EDUCATIONAL INSTITUTIONS : As mentioned in some of the earlier sections, law is not directly available to decide legal liability for la