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

Welfare of the community act 1962 , Helen Brown's husband Mark was recently...

Helen Brown's husband Mark was recently charged with an offence under the Welfare of the Community Act 1962 (Qld).  It is likely that Helen will be called as a witness against hi

Definition of an industrial dispute, Question 1: (A) What is an industr...

Question 1: (A) What is an industrial dispute and what are the elements involved in the definition of an industrial dispute? (B) What are the various options available to t

Explain court of final appeal arrived, Read Fateh Muhammad v Commissioner o...

Read Fateh Muhammad v Commissioner of Registration [2001] 2 HKLRD 659 which can be found in the westlaw HK website of our library database in which there is a summary of what the c

Air Bus case study, Had France adopted OECD convention on bribery ahead of ...

Had France adopted OECD convention on bribery ahead of these transactions would the firm''s behavior have differed?why?

Dormant Commerce Clause, In 2001, Puerto Rico enacted a law that requires s...

In 2001, Puerto Rico enacted a law that requires specific labels on cement sold in Puerto Rico and imposes fines for any violations of these requirements. The law prohibits the sal

Advantages of negotiable instruments, Advantages of Negotiable Instruments ...

Advantages of Negotiable Instruments (i) A negotiable instrument provides a creditor regarding a better remedy, since once it has been issued like or accepted whether applicab

Intent to defraud the italian creditor, Intent to defraud the Italian credi...

Intent to defraud the Italian creditor: The company owed money to trade creditors and also had outstanding against it a large claim for breach of contract which it disputed (t

Impose a duty on directors, Impose a duty on directors: A company is, ...

Impose a duty on directors: A company is, however, free to impose a duty on its directors to attend board meetings within a certain period of time and to prescribe the consequ

What is the use of self defence, What is the  use of self defence The ...

What is the  use of self defence The controversy regarding the use of self defence is the 'anticipatory self-defence'. Those with a restrictive view state that it no longer e

Holder or other holder in due course, Holder or Other Holder in Due Course ...

Holder or Other Holder in Due Course The holder of a bill of exchange who that does not come within the statutory definition of such a holder in due course holds that the bill

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