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
Deferred Debts - Disclaimer of assets: Deferred Debts: A debt owed to a member as member, i.e. an unpaid dividend, is a deferred debt paid only when ordinary debts have b

DUTIES OF AUDITORS: The duties of auditors are explained in the following cases. 1. RE: KINGSTON COTTON MILL CO. (1896)(CHANCERY) For some years before a company was wou

Problem 1: Give a critical description of Hart's concept of law and discuss the failings in such theory. Problem 2: Analyse Austin's command theory of law and discuss h

QUESTION 1 Write in detail on the following (a) Agency shop orders and (b) Decrease from the remuneration of a worker for the employer's benefit QUESTION 2 An indust

Write one term paper (20 to 25 typed pages of actual text). **The paper must be on a word, phrase, or clause within the U.S. Constitution. Ex. Establishment Clause, Free Exercise

Voluntary liquidation - shares of the minority: A company in (or about to go into) members' voluntary liquidation may by special resolution authorize the liquidator to sell th

Working of State jurisdiction State jurisdiction concerns essentially the extent of each State's right to regulate conduct or consequences of events. A state has the competence

Rights of co-guarantors among themselves A guarantor who that has paid more than his share below the guarantee is entitled such to contribution from his co-guarantors, although

Trade Unions:                   Trade Unions are registered under s.11 of the Trade Unions Act 1952 with the primary object of regulating the  relations between employees and

Question : (a) Discuss the four main reasons for planning public relations programmes. (b) How you would define ‘publics' and give two examples of internal and external pu