Reconstruction - take-over bid, Business Law and Ethics

Assignment Help:

Reconstruction Under S.280:

The essential features of this type of reconstruction have been described at 8.2.1(b).  It is subject to several disadvantages and is little used.  But when a reconstruction takes this form s.280 procedure must be followed so that a dissenting minority does have the appropriate safeguard.

  This procedure applies to a company which is proposed to be or is in course of being wound up voluntarily.  A company in liquidation must dispose of its assets (other than cash) by sale in order to pay its debts and distribute any surplus to its members.  The special feature of a s.280 reconstruction is that the business or property of Company P is transferred to Company Q in exchange for shares of the latter company which are allotted direct or distributed by the liquidator to members of Company P.  Obviously the creditors of Company P will have to be paid in cash.  A dissenting minority of members of Company P can also require to be paid in cash.  Hence substantial sums may have to be found in cash.  This is one of the drawbacks.


Related Discussions:- Reconstruction - take-over bid

State article 10 of air and outer space law, State Article 10 of air and ou...

State Article 10 of air and outer space law Article 10 allows the aircraft to cross the territory of a contracting State without landing, and further states that every aircraft

Act defined a traffic indication, Act defined a traffic indication: Ho...

Act defined a traffic indication: However in EVANS v CROSS, Evans was charged by ignoring namely, a traffic sign, a white line painted in the middle of a road, whether overtak

Theobald , Theobald: Conversely there such I take to be the duty of th...

Theobald: Conversely there such I take to be the duty of the auditor; then he must be honest.... i.e. like he must not certify that what he does not believe to be true, reason

What are the implied obligations of the employer, Question 1: With the ...

Question 1: With the enactment of the Labour Act 1975, how far has the freedom of the employer to unilaterally terminate contracts of employment been abrogated? Question 2:

Criminal law, Criminal Law: However criminal law has been defined as t...

Criminal Law: However criminal law has been defined as the law of crimes.  So a crime has been defined just like an act or omission or committed, omitted in violation of publi

Statutes of general application - subsidiary legislation, Statutes of Gener...

Statutes of General Application: Whereas there is no authoritative definition of a "statute of simple application" the phrase is presumed to refer to those statutes that appli

Determine the primary criticism of the stages model, Determine the primary ...

Determine the primary criticism of the stages model The primary criticism of the stages model is that it tends to be front-loaded, which means, more attention is paid to policy

Liability of maker of a promissory, Liability of Maker of a Promissory ...

Liability of Maker of a Promissory Conversely S.89 provides such with the maker of a promissory notice through making it: like (a) Engages such he will pay it according to

Explain territorial principle of criminal jurisdiction, Explain Territorial...

Explain Territorial principle of criminal jurisdiction The territorial principle provides that the courts of the State where a crime is committed may exercise jurisdiction over

Explain articles of universal declaration of human rights, Explain Articles...

Explain Articles of Universal Declaration of Human Rights i. Preamble: 'Whereas recognition of the inherent dignity and of the equivalent and inalienable rights of all  membe

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