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

Define the term - inaction and crises, Define the term - Inaction and crise...

Define the term - Inaction and crises We know that the standard social planner does not show and delay or have tendency of inaction and adopts a policy as soon as it is proved

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

Jurisdiction over your company, a) Determine which forum(s) Purchaser could...

a) Determine which forum(s) Purchaser could file her lawsuit in.   Personal Jurisdiction, b)  If Purchaser were to file in CA, could she formed specific jurisdiction over you

Assets in the possession of creditors, ASSETS IN THE POSSESSION OF CREDITOR...

ASSETS IN THE POSSESSION OF CREDITORS:  If the creditor has seized assets in the course of executing a judgement for debt against the company and at the commencement of the wi

What is a contract, QUESTION (i) Briefly explain the following in relat...

QUESTION (i) Briefly explain the following in relation to the legal structure of Mauritius- Legislative branch Executive branch Judiciary branch Local Government

Explain the fundamental causesof inertia, Explain the fundamental causesof ...

Explain the fundamental causesof inertia The fundamental causes of such 'inertia' which are reflected in, besides other factors, in inaction and delays. The theory must also be

Law institutions and delegation of authority, Law institutions and delegati...

Law institutions and delegation of authority How time-consistency plays a significant role in policy process. The problems induced by the heterogeneity leading to the problem o

Ethics, Assignments should be submitted on or before the due date. Zero mar...

Assignments should be submitted on or before the due date. Zero mark will follow late submission of an assignment unless you have an acceptable reason approved by the instructor.

Open national bidding, QUESTION 1 (a) What are the conditions for use o...

QUESTION 1 (a) What are the conditions for use of the Request for Sealed Quotation method? (b) Explain the procedures to be followed for the preparation of a shortlist for t

When was international atomic energy agency established, Explain Internatio...

Explain International Atomic Energy Agency The  NPT  also  creates  rights and  obligations on  the  members of  NPT  to  comply  with  the provisions of the treaty and to ensu

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