Take-over bid, Business Law and Ethics


                  If Company A ("the transferee company") offers to acquire shares of Company B ("the transferor") and the scheme or contract to which the offer relates is accepted by holders of nine-tenths of the shares for which the offer is made Company A may then compulsorily acquire the remaining 10 per cent (or less) of the shares so as to achieve a complete 100 per cent acquisition of the shares: CA, s.210.

                It is standard procedure in making a take-over bit to state that if 90 per cent acceptance is attained compulsory acquisition under s.210 will follow.  Company A may resort to s.210 whether it offers its own shares or cash for shares of Company B.  The procedure is available if Company A already owns shares of Company B and offers to acquire those which it does not already own (but see para 22 below.)  The non-accepting minority may however apply to the court to prevent Company A from acquiring their shares.  The rules of procedure are explained below.

               The offer must be made by a company to acquire shares of another.  S.210 is not available to an individual who makes a take-over bid (but he can always form a company for the purpose: provided no fraud or imoproper conduct is involved: Re Bugle Press Ltd.

                 If Company A directly or through subsidiaries owns more than one-tenth of the shares of Company B then (in order to be able to use s.210) Company A must:

(a) offer the same terms for all the shares which it does not already own;

(b) obtain acceptances from holders who are three-quarters in number as well as holders of 90 per cent of the shares.

                 The wording of s.210 is ambiguous but it is generally taken that Company A must offer to acquire all of the shares of Company B which it does not already own if it is then to use s.210 to acquire the remaining shares in Company B (or all the shares of the class) for which the offer is made.

Posted Date: 1/15/2013 4:17:56 AM | Location : United States

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

Write discussion on Take-over bid
Your posts are moderated
Related Questions
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

QUESTION 1 a) What are the implied obligations of an employer and an employee under a contract of employment b) In what circumstances should an employer pay severance allowa

Minimum subscription - Commencement of business: If the minimum subscription was not raised the company can only commence business or exercise borrowing powers if:- a)

Inflationary Bias Another potential problem with the coordination of monetary policy is that it can worsen the inflationary bias within each country. If the costs associated wi

Define the outer boundaries of policy choice The agenda proper tends to be set by political forces and actors located outside of the researcher/analyst community. Elected polit

QUESTION 1 The proliferation of tribunals, enquiries and quasi-judicial bodies constitutes the risk of a new type of despotism in running public affairs. How do the courts ensu

District Magistrate's Court -Civil Appeals Moreover in S.11 (1) of the Magistrate's Court Act gives that 'any person who is aggrieved through an order of a magistrate's court

QUESTION Many governments around the world have sought to address the problems posed by materials on the Internet that are illegal under their offline laws, and those considered

Illustrate the Maintenance Phase of policy process a) Develop a plan for active maintenance and review Who will ensure that policies are actively maintained and reviewed? H

What is meaning of Relative Price Effects This final linkage occurs when there is free exchange rate between countries, which means the exchange rate is allowed to appreciate o