Explanatory statement - mergers and winding up, Business Law and Ethics

Assignment Help:

Explanatory statement - mergers and winding up:

It is also necessary that the members or creditors who are to vote on the scheme should be able to understand its full effects.  Accordingly when notices are issued to convene the meetings ordered by the court an explanatory statement must also be issued: CA, s.208.  The statement:

(a)     explain the effect of the scheme ie. puts the proposal forward in terms which a non-expert can understand;

(b)     disclose any material interests in the scheme of the directors, whether as directors, members, creditors or otherwise and the effect of the scheme on the directors' interests if different from like interests of other persons;

(c)     if the scheme affects the rights of debenture holders the statement discloses any interest of a trustee for debenture holders in the scheme.

As an example a statement has been held to be deficient under (a) because it stated that assets had been valued but did not disclose the amount of the revaluation.  If the statement is defective on technical points the court cannot approve the scheme.  The whole operation must be repeated using a satisfactory explanatory statement.


Related Discussions:- Explanatory statement - mergers and winding up

Explain international law on siachen issue, /* Style Definitions */ table...

/* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-prior

Lifting the veil of incorporation, Lifting the Veil of Incorporation: ...

Lifting the Veil of Incorporation: The legal rule that a registered company is at law a different person altogether from the subscribers to the memorandum of association and o

Suggested actions for addressing phoenix activity, Q. Suggested actions for...

Q. Suggested actions for addressing phoenix activity? The following actions are suggested for addressing phoenix activity. Those that have been suggested are the actions that:

Define the liability, The MV unfortunate was talking passengers to Lyme Cay...

The MV unfortunate was talking passengers to Lyme Cay when it receive a distress signal from a vessel nearby the master started to proceed towards the vessel but stop when he reali

Define accession and ratification, Define  Accession and ratification ...

Define  Accession and ratification Another area/aspect that needs to be highlighted with regards to a Treaty is the difference between signing and ratifying a particular treaty

Experience law, Experience Law This is a law of marketing beginning tha...

Experience Law This is a law of marketing beginning that the unit cost of value added to a standard goods, calculated in constant currency, declines by a constant percentage ea

Explain the universal declaration on human rights, Explain the Universal De...

Explain the Universal Declaration on Human Rights Universal Declaration on Human Rights was passed by UNGA, entailing a comprehensive and detailed concept pertaining to rights

Distribution of surplus assets, Distribution of Surplus Assets: If the...

Distribution of Surplus Assets: If the debts are paid in full the liquidator should apply what remains in repayment of capital paid on shares and then distribute any residue t

Features of negotiable instruments, Features of Negotiable Instruments (...

Features of Negotiable Instruments (i) Whether made payable to bearer, whether the title to it is negotiable through delivery. Although made payable for order, the title to such

District magistrate''s court -civil appeals, District Magistrate's Court -C...

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

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd