Statutory safeguard - non-accepting shareholders, Business Law and Ethics

Assignment Help:

Statutory safeguard - Non-accepting shareholders:

The non-accepting shareholders have a further statutory safeguard.  Company A is not obliged to serve notice of intention to acquire their shares.  But as soon as Company A's total ownership of shares in Company B reaches 90 per cent (or 90 per cent of a class) it must within one month give notice of that fact to the holders of the outstanding shares.  Those shareholders may then within the ensuing three months require Company A to acquire their shares on the same terms as have been accepted by the approving shareholders.  By this means the shareholders who at first did not accept the offer for their shares may accept it in order to escape from the unsatisfactory position or remaining as a very small minority of members in a company (B) dominated by a single shareholder(A): CA, s.210(2).


Related Discussions:- Statutory safeguard - non-accepting shareholders

Formation and characteristics of agency, Formation and Characteristics of A...

Formation and Characteristics of Agency An agency may come into existence by the following ways: Contract (Appointment) or agreement Further this can be done in any

Determine the cash flows of the swap, Question : (a) Show how a party c...

Question : (a) Show how a party can terminate a forward transaction prior to maturity? (b) Suppose a forward Rate Agreement that: Expires in 30 days Is based on a n

Choice of method - reconstructions , Choice Of Method: There are three...

Choice Of Method: There are three statutory methods to be considered:          Where one company offers to acquire the shares of another company and its offer is accepted b

Media Law, online Law test, Due tomorrow December 14th, 20 multiple choice...

online Law test, Due tomorrow December 14th, 20 multiple choice questions and 4 essay questions. Topics, Obscenity, child porn; broadcasting indecency, citizens united, ipr & cop

Describe the separate streams of problems and policies, Describe the Separa...

Describe the Separate streams of problems and policies The separate streams of problems, policies, and politics each have lives of their own. Problems are recognized an

Effect of ultra vires transaction, Effect of Ultra Vires Transaction: ...

Effect of Ultra Vires Transaction:  An ultra vires transaction with a company may result in: a) a transfer of specific property to the company, or b) money being lent to

Aggrieved oecision of the minister of public infrastrator, QUESTION G...

QUESTION Gerald is aggrieved of the decision of the Minister of Public Infrastructure to build a high way bypass through his housing estate. Gerald has been advised to apply

Defining phoenix activity, Stakeholders felt the working definition was bro...

Stakeholders felt the working definition was broadly appropriate. It was also noted that the Treasury definition, used as the working definition, has been endorsed by the ATO. A nu

Corporate social responsibility, Corporate Social Responsibility (CSR) has ...

Corporate Social Responsibility (CSR) has become a key aspect in the activities of an organization in the context of environment and community development, employees, customer serv

High court - establishment and composition, High Court - Establishment and ...

High Court - Establishment and Composition Establishment Further the High Court is established through S.60 (1) of the Constitution that states which 'there shall be a

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