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

Delays and inadequate remedies - equity, Delays: However certain stand...

Delays: However certain standard defences knows as "essoins" caused considerable delay earlier than a case could be heard.  Now for a certain condition like the hearing of a c

Convening of general meetings, Convening of General Meetings: General ...

Convening of General Meetings: General meetings are normally convened by the Board of Directors pursuant, to the relevant provision of the company's articles, such as Table A,

Government estimate of the number of phoenix operators, Former Assistant Tr...

Former Assistant Treasurer Bill Shorten has cited estimates, based on ATO expertise, that there are 6,000 phoenix operators in Australia. It is recognised that this estimate is a ‘

Agency law - agency and partnership, Agency Law - Agency and Partnership ...

Agency Law - Agency and Partnership Sources of Agency Law However the law of agency in the US is based on the common law rules that have been developed through the Engl

How would you ensure that the code is effective, QUESTION 1 You are giv...

QUESTION 1 You are given the task to make a Code of Ethics for your organization (a) Describe a Code of Ethics (b) What are the different aspects/issues that you might in

Determine the complexities of the policy process, Determine the Complexitie...

Determine the Complexities of the policy process Complexity of the policy process, affects the form of delegation of powers to the agents by the principal. When there are a lar

Liability by estoppel, Liability by Estoppel Anyone who presents himse...

Liability by Estoppel Anyone who presents himself or permits himself for be represented, further by words, conduct or writing as the partner about another person like  persons

What are the obligations of the employer, Question 1: Constructive dism...

Question 1: Constructive dismissal is inherently different from dismissal in the sense that it is the employee who takes the initiative in considering the contract as having be

Limited, Name to end with the word "Limited":                         ...

Name to end with the word "Limited":                             S.5(1)(a) provides that the word "limited" must be the last word of the name of a company which is to be limit

What is the territorial sovereignty, What is the territorial sovereignty ...

What is the territorial sovereignty The territorial sovereignty includes the land territory, the territorial sea, the seabed and the subsoil of the territorial sea. It also inc

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