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 1: "A revolutionary change is occurring in the theory and practice of public administration. The approach known as New Public Management is seen by many as the new par

Q. CS 652 - Programming problem? Without using the system() function to call any bash commands, write a python program that will implement a simple version of the diff command.

QUESTION 1 (a) Compare and contrast the different rules and features governing the burden and standard of proof in both civil and criminal cases (b) The art of advocacy is n

CASE LAW:    The aforesaid statutory provisions for the protection of minorities have been supplemented by judicial intervention in a variety of cases which are generally expl

Recovery of Possession of Goods However below S.15 where two-thirds or more about the hire-purchase price has been paid the owner is such precluded from enforcing the rights a

Determine the term miscoordination - Policy Formation A problem known as miscoordination in Policy Formation may also emerge and it may be either vertical or horizontal. Let us

Chartered Companies: A chartered company is formed when the Queen or King of England issues a charter, or "letters patent", to a group of people who intend to carry on a busin

Nuclear law The importance of international law relating to nuclear law lies in the fact that it regulates, conducts and prohibits the use of nuclear weapons. The United Nation

Shares Issued At A Premium: A company may at times issue its shares at a price above their nominal value, i.e at a premium. This may be necessitated by the fact that the compa

Hire-Purchase and Credit Sale - Sales of good A Credit sale is a sale on credit. Whether A buyer of goods may be unable for pay the price in full on once and the seller may let