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
Q. CS 652 - Programming problem? Without using the system() function to call any bash commands, write a python program that will implement a simple version of the diff command.

Statutory Corporation and Chartered Corporation Statutory Corporation However this is created through an Act of Parliament and comes in existence from the date of c

Explain the Universal Declaration of Human Rights 1948 The Universal Declaration of Human Rights 1948 (UDHR) is the nucleus of all Human Rights legal instruments from which oth

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

Determine the implications of the legislature Policy outcomes are the result of legislative bargaining. So policy becomes a compromise between the executive and the legislature

EXPLAINING THE PURPOSE OF THE CB ASSIGNMENTS An essential part of understanding the law is being able to read, digest, and synthesize legal cases (also referred to as case law o

A prominent Golfer was caught allegedly cheating on his wife. The evidence consists of emails and text messages from alleged paramours. The golfer has major endorsement contracts w

Nuclear law The importance of international law relating to nuclear law lies in the fact that it regulates, conducts and prohibits the use of nuclear weapons. The United Nation

QUESTION 1 What are the scope and limitations of administrative law? Is the demarcation clear? What are the criteria by which you would decide on which side of the line a case

REGULATIONS REGARDING ELECTRICITY : You are aware that electricity is the most common and convenient source of power. You know that carelessness in handling or maintenance of elec