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 the mode of acquisition - occupation, Explain the mode of acquisiti...

Explain the mode of acquisition - occupation The mode of acquisition is occupation. It is a means by which a State can acquire territory which belongs to no other entity. The o

Give five differences between law and ethics, QUESTION (a) In scientifi...

QUESTION (a) In scientific ethics, list four fundamental principles of scientific research? (b) Give five differences between law and ethics (c) When does a ‘Conflict of

The role of expectation of winning the election, The role of expectation of...

The role of expectation of winning the election The role of expectation, of possibility of winning the election and of policy convergence on choice of agenda. In standard mode

Contents of the notice - meetings and resolutions, Contents of the Notice: ...

Contents of the Notice: The notice convening a meeting must be clear and explicit so that the person receiving it may be in a position to decide whether or not he ought in his

Rules relating to an offer - law of contract, Rules Relating to an Offer - ...

Rules Relating to an Offer - Law of Contract However the case law relating to an offer has established the following rules: 1. Such offer may be oral plus written or may be

Ostensible authority - authority of partners, Ostensible Authority - Author...

Ostensible Authority - Authority of Partners A difference is something drawn among the genuine and ostensible authority about a partner. Whether it is actual or express author

Meeting is unnecessary - meetings and resolutions, Meeting is Unnecessary -...

Meeting is Unnecessary - meetings and resolutions: The purpose of holding general meetings with all the formality which this entails is to give to each member the opportunity

Analyse austins command theory of law, Problem 1: Give a critical descr...

Problem 1: Give a critical description of Hart's concept of law and discuss the failings in such theory. Problem 2: Analyse Austin's command theory of law and discuss h

Explain how this power conferred on the fsc is exercised, QUESTION 1 Th...

QUESTION 1 The Financial Services Commission (FSC) is the licensing authority for businesses operating in the Global Business sector. By referring to the Global Business Catego

State the term - monetary policy coordination, State the term - monetary po...

State the term - monetary policy coordination Criticisms have been put forward on proposals for enhanced fiscal and monetary policy coordination. This policy coordination might

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