Usual procedure - shares of the minority, Business Law and Ethics

Usual procedure - shares of the minority:

Hence the usual procedure is:

(a)     first to dispose of possible objections by creditors by paying their debts or providing security for their due payment of their debts.  Alternatively the company may seek to obtain the consent of the creditors to the transfer of liability for their debts to the transferee company (as part of the terms on which the business is sold);

(b)     then to convene a general meeting and propose a special resolution to approve the sale of the business in exchange for shares of the purchasing company.  It thus becomes evident how many members may demand to be bought out for cash since only members who did not vote in favour of the resolution can opt for the cash payment.  If it is clear that the cash expenditure will be prohibitive the scheme can be abandoned before the company goes into liquidation;

(c)     finally (as the second step at the same general meeting) to move a resolution to go into liquidation.  If it is to be a creditors voluntary liquidation then a committee of inspection must be appointed and asked to approve the sale under s.292

Posted Date: 1/15/2013 4:35:01 AM | Location : United States







Related Discussions:- Usual procedure - shares of the minority, Assignment Help, Ask Question on Usual procedure - shares of the minority, Get Answer, Expert's Help, Usual procedure - shares of the minority Discussions

Write discussion on Usual procedure - shares of the minority
Your posts are moderated
Related Questions
Question: (a) Describe the various risks faced by an international bank operating in an international market, with emphasis on interest rates and market risks. (b) Show how

Question 1: (i) Distinguish between industrial relations and employee relations. (ii) State the environmental factors that affect employee relations. (iii) Give five r

Compulsory winding up: At the hearing other creditors of the company may oppose the petition.  If so, the court is likely to decide in favour of those to whom the larger amoun

Are you searching Canadian business law assignment tutors for help in your college and university assignments? Do you need expert’s assistance in Canadian law assignments? We at w

Payment to Promoters:   A promoter has no legal right against the company he promotes. The main reason is that the company did not ask him to promote it, and because the compa

I will provide a cases from the media that have ethical implications. Please prepare a ppt presentation that: a) describes the issue/story (Clearly identify which case you ar

Question 1: (a) What do you meant by the term misconduct in employment law. How does the English definition of misconduct differ from the French definition of misconduct? (b

What is the meaning of Pareto inefficient outcomes Policy coordination is, therefore, designed to avoid Pareto inefficient outcomes. In absence of a supranational authority tha

Termination - Duties of Owner Although below S.12 of the Act the hirer may on any time before the final payment may or instalment falls due to terminate the agreement through li

PROOF OF DEBTS:                                       Many of the rules of bankruptcy apply to the discharge of the company's debts: s.310.  The liquidator must obviously requ