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

Show the criminal conduct definition of phoenix activity, Q. Show the Crimi...

Q. Show the Criminal conduct definition of phoenix activity? Master Builders argued that the definition of phoenix activity should focus on the existing sections of corporation

Determine the case against coordination, Determine the Case against Coordin...

Determine the Case against Coordination Coming again to EMU platform we find some arguments against coordination also. For example, the core of the argument against coordinatio

Legal environment of business, Legal Environment of Business Invention...

Legal Environment of Business Inventions "R Us (IRU) advertises invention development services and has aggressively advertised its services on-line, in magazines, and on radio

Law of negligence not every error is negligence, Every person is having dif...

Every person is having different set of knowledge and skill with them which is different from other individual, this difference in skill and knowledge factor among various individu

Define the term - credibility and reputation, Define the term - Credibility...

Define the term - Credibility and Reputation Nature and characteristic of the environment in which a policy has been chosen has a number of important implications. As we have a

Partnerships - unincorporated associations, Partnerships - Unincorporated A...

Partnerships - Unincorporated Associations Conversely Partnership is defined through S.3 (1) of the Partnership Act as "the relation that subsists between persons carrying at

Executed consideration - types of consideration, Executed Consideration - T...

Executed Consideration - Types of Consideration Actually Executed consideration is constituted through something done by the plaintiff because to a promise made with the defen

Unsecured trade creditors, Unsecured trade creditors: It refers to a "...

Unsecured trade creditors: It refers to a "class" of members or of creditors. Obviously if two or more companies are involved or if one company has two classes of shares, eg.

Constitutional interpretation, The United States form of government is ofte...

The United States form of government is often described as a "Constitutional Democracy ". The existence and importance of a written Constitution is a major difference between the A

Explain immunities of international organizations, Explain Immunities of in...

Explain Immunities of international organizations The immunities of international organizations are almost always specified in a treaty between the organizations and the host

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