Form of reconstruction, Business Law and Ethics

Assignment Help:

Form of reconstruction:

Where one company transfers its undertaking (and assets) to another company in exchange for shares to be alloted direct or distributed to the members of the company, the company which makes the transfer must go into voluntary liquidation and the transfer must be approved by special resolution passed in general meeting.  The acquiring company may be a new company formed for the purpose.  There is then a change of company but the same shareholders as a group own the same business (through a company).  It is a form of reconstruction.  If however the acquiring company already has a business and a different group of members this method effects an amalgamation so  that the two groups of shareholders join together in holding the shares of a single company which owns both businesses (s.280).

A scheme of arrangement may be used in many different situations.  Essentially it is suitable for making a change in the rights of shareholders or creditors of an existing and continuing company.  But it can also be used to effect a take-over (as described in (a) above) or to carry out a reconstruction involving changes of company structure (s.207).


Related Discussions:- Form of reconstruction

Contracts of indemnity, Contracts of Indemnity Indemnity is the undert...

Contracts of Indemnity Indemnity is the undertaking about primary responsibility to see like a certain act is performed there.If a particular contractual promise such constitu

Suing and being sued, Suing and being Sued:            Because a compa...

Suing and being Sued:            Because a company is at law a different person altogether from its members it follows that a wrong to, or by, the company does not legally con

Political and education function of chief justice, Political and Education ...

Political and Education function of Chief Justice Political Function Moreover the chief justice administers the presidential oath for the person who is elected like pre

Regulations regarding alcohol purchase and storage, REGULATIONS REGARDING A...

REGULATIONS REGARDING ALCOHOL PURCHASE AND STORAGE As YOU know, ethyl alcohol is one of the laboratory chemicals which can be misused. To control its purchase, storage and use,

What are the functions and powers of the security council, What are the fun...

What are the functions and powers of the Security Council? The functions and powers of the Security Council, which are as follows: • To keep international peace and security

Penalty for improper appointment, PENALTY FOR IMPROPER APPOINTMENT:  ...

PENALTY FOR IMPROPER APPOINTMENT:           S.161 (4) provides that if any unqualified person is appointed as auditor, the person appointed, the company and every officer i

Explain about the inflationary bias, Inflationary Bias Another potentia...

Inflationary Bias Another potential problem with the coordination of monetary policy is that it can worsen the inflationary bias within each country. If the costs associated wi

Parol evidence rule, 1. How do mandatory terms limit freedom of contract? ...

1. How do mandatory terms limit freedom of contract? 2. How do contract interpretation issues arise? 3. What is the difference between subjective and objective intent?   4

Explain international law on terrorism, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Procedure for registration of trade unions, Question 1: (a) The Employ...

Question 1: (a) The Employment Relations Act does not apply to all categories of workers. Describe. (b) What is the main procedure for registration of trade unions? Qu

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