Reconstruction - take-over bid, Business Law and Ethics

Reconstruction Under S.280:

The essential features of this type of reconstruction have been described at 8.2.1(b).  It is subject to several disadvantages and is little used.  But when a reconstruction takes this form s.280 procedure must be followed so that a dissenting minority does have the appropriate safeguard.

  This procedure applies to a company which is proposed to be or is in course of being wound up voluntarily.  A company in liquidation must dispose of its assets (other than cash) by sale in order to pay its debts and distribute any surplus to its members.  The special feature of a s.280 reconstruction is that the business or property of Company P is transferred to Company Q in exchange for shares of the latter company which are allotted direct or distributed by the liquidator to members of Company P.  Obviously the creditors of Company P will have to be paid in cash.  A dissenting minority of members of Company P can also require to be paid in cash.  Hence substantial sums may have to be found in cash.  This is one of the drawbacks.

Posted Date: 1/15/2013 4:33:24 AM | Location : United States







Related Discussions:- Reconstruction - take-over bid, Assignment Help, Ask Question on Reconstruction - take-over bid, Get Answer, Expert's Help, Reconstruction - take-over bid Discussions

Write discussion on Reconstruction - take-over bid
Your posts are moderated
Related Questions
QUESTION a) How is the term "investor" defined in the Investment Promotion Act? b) In what ways can the Board of Investment (BOI) assist in business facilitation and Public-Pr

I am an executive being transferred from my home city on the west coast to one in the Midwest. I know nothing about the city I'm moving to, but I have to buy a house there. Realtor

Presumed Agency or from Cohabitation Whether a woman who is living with a man is deemed that  be his agent for purposes of acquire necessaries to the family; marriage is not n

General rules on statute-barred debts: A statute-barred debt should be rejected since it is not legally enforceable.  But in a members' voluntary winding up the liquidator may

Mr. D is a professional basketball player who orders some shoes through the mail. The mail order house promises all customers delivery within 30 days of receiving the order. Mr. D'

Meeting is Unnecessary - meetings and resolutions: The purpose of holding general meetings with all the formality which this entails is to give to each member the opportunity

Ratio Decidendi Conversely "ratio decidendi" of a case consists of the material facts of such case and the decision made through the judge on the basis of those facts.  So hen

Question 1: As a potential investment company you have been asked to brief your potential business partner about the most important steps required for the setting up of a hosp

DIVIDENDS: As a commercial term, the word "dividends" has a variable meaning which depends on the context in which it is used. For purposes of company law, it denotes the paym

Lifting the Veil of Incorporation: The legal rule that a registered company is at law a different person altogether from the subscribers to the memorandum of association and o