Non-accepting shareholders, Business Law and Ethics

Assignment Help:

Non-accepting shareholders:

Acceptance on the required scale must be obtained within a maximum of four months from the date of the offer.  The position then is that:

(a) at the end of the four month period (not earlier than that even if 90 per cent acceptance is attained before the period expires) Company A may (but it need not do so if it does not wish-however see paragraph 25 below) serve notice on the non-accepting shareholders of its intention to acquire their shares on the same terms as have been accepted by the majority.  This notice may be given at any time within a two month period following the four month period;

(b) on receiving the notice from Company A each non-accepting shareholder of Company B has one month in which he may apply to the court to order that Company A shall not acquire his shares (see paragraphs 27-28 below);

(c) one month after serving notice on non-accepting shareholders (or if they apply to the court but fail then as the court has disposed of their application) Company A may require Company B as-

 

(i) to transfer the shares of its non-accepting shareholders to Company A, and

(ii) to receive the purchase consideration to hold in trust for the non-accepting shareholders.

By this means the outstanding shares are transferred without any further action on the part of the non-accepting shareholders.


Related Discussions:- Non-accepting shareholders

Function of the registered office, Function of the Registered Office: ...

Function of the Registered Office:                          Section 107(1) provides that a company shall, as from the day on which it begins to carry on business or as from th

Length of notice - meetings and resolutions, Length of Notice - Meetings an...

Length of Notice - Meetings and resolutions: S.133(1) provides that any provision of a company's articles shall be void in so far as it provides for the called of a meeting of

Cross agency actions - addressing phoenix activity, Q. Cross agency actions...

Q. Cross agency actions - addressing phoenix activity? the ASIC, ATO and FWO all have responsibilities in investigating and monitoring elements of phoenix activity. This means

State the issues relating to the public policy, State the issues relating t...

State the issues relating to the public policy We shall focus on the issues relating to the public policy in an open economy setting in a bit more technical way. While approac

Types of licence needed tourist enterprise, QUESTION (a) Mr Raj owns a...

QUESTION (a) Mr Raj owns a plot of land and wishes to invest in the tourism industry and seeks your advice as to whether he needs to apply for a tourist enterprise licence and

Contents of group accounts, Contents of Group Accounts: By s.152(1), t...

Contents of Group Accounts: By s.152(1), the group accounts laid before a company shall give a true and fair view of the state of affairs and profit or loss of the company and

Declaration and payment, Declaration and Payment: There is no provisio...

Declaration and Payment: There is no provision in the Act dealing with payment of dividends. It is therefore governed by the provisions of the company's articles, failing whic

Define the principle of prescription, Define the principle of prescription ...

Define the principle of prescription Prescription   (res  nullius-an  asset susceptible of acquisition but presently under the ownership or sovereignty of no legal person). Pr

Explain The international court of justice, Normal 0 false fa...

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

A contract of employment or a procedure agreement, QUESTION 1 Write in ...

QUESTION 1 Write in detail on the following (a) Agency shop orders and (b) Decrease from the remuneration of a worker for the employer's benefit QUESTION 2 An indust

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