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

Determine the term - cyclic majority voting, Determine the term - cyclic ma...

Determine the term - cyclic majority voting The cyclic majority voting, a problem first recognized by Marquis de Condorcet in 1785, the indeterminacy of voting process, has bee

District magistrate''s court - civil jurisdiction, District Magistrate's Co...

District Magistrate's Court - Civil Jurisdiction Conversely the civil jurisdiction of the district magistrate's courts in claims not below customary law was changed through St

Explain unhcr, Explain UNHCR UNHCR provides protection and assistance n...

Explain UNHCR UNHCR provides protection and assistance not only to refugees, but also to other categories of displaced or needy people. These include asylum seekers, refugees w

Define your point of view about international legal relation, Define your p...

Define your point of view about international legal relation. International legal relations: International law covers the matters which may occur between countries not li

Recent developments in mitigating phoenix activity, Q. Show Recent developm...

Q. Show Recent developments in mitigating phoenix activity? Since these previous works, there have been significant developments in mitigating phoenix activity. Following Tr

Obligations of the employer and the employee, Question 1: Constructive ...

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

Constructive notice - registered office, Doctrine of "Constructive Notice":...

Doctrine of "Constructive Notice":  The doctrine of "constructive notice" is a rule of company law to the effect that a person transacting business with a company is taken to

Partnership agreement - voidable contracts, Partnership Agreement - Voidabl...

Partnership Agreement - Voidable Contracts Conversely an infant is bound at common law through a partnership agreement although he is free to repudiate it at all time during i

Faith irrational , Jake grew up in a passionately devoted religious communi...

Jake grew up in a passionately devoted religious community.  He has been taught from a young age that an invisible, all-powerful God loves him.  He was also taught that he will be

Explain the international law on kashmir dispute, Normal 0 fals...

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

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