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 1: a. Distinguish between Economic Development and economic growth. b. "Despite all their diversity, less developed countries are linked by a range of common problems"

Define the principle of prescription Prescription   (res  nullius-an  asset susceptible of acquisition but presently under the ownership or sovereignty of no legal person). Pr

Power to dispense with the word "Limited":                             Although s.5 provides that the last word of the name of a limited company must be "limited" this would n

QUESTION 1 (a) What are the conditions for use of the Request for Sealed Quotation method? (b) Explain the procedures to be followed for the preparation of a shortlist for t

State Article 14 of air and outer space law Article 14 refers to the fact that each contracting State should agree to take effective measures to prevent the spread by means of

Discuss about the three streams There come times, however, when these three streams are joined. An event in the political stream, such as a change in administration, calls for

DECLARATION OF SOLVENCY:                                       A voluntary winding up is a members' voluntary winding up only if the directors make and deliver to the regist

Determine the agenda-setting process The "agenda" is the list of subjects or problems to which government officials, and people outside of government closely associated with t

X Co. is a retail dealer of garden tractors. Mr. Y signs a contract to buy a garden tractor for $400 but later backs out of the agreement. The tractor that Y agreed to buy is subse

There are certain legislations passed regarding state succession. For example, The continuance of legal Proceedings Act 1950; The Pakistan Currency Act 1950; The Pakistan