Unsecured trade creditors, Business Law and Ethics

Assignment Help:

Unsecured trade creditors:

It refers to a "class" of members or of creditors. Obviously if two or more companies are involved or if one company has two classes of shares, eg. preference and ordinary, or is proposing a compromise with different classes of creditors, eg. debenture holders and unsecured trade creditors, it must ask the court to order that separate meetings be held of each group and it must obtain the required majority approval at each meeting.  But the principle is carried even further.  If within say one class of shareholders there are groups whose interests in the proposed scheme are clearly different the court must be asked to order that separate meetings be called of each group.  Therefore it has been said that each meeting "must be confined to those persons whose rights are not so dissimilar as to make it impossible for them to consult together with a view to their common interest" (Sovereign Life Assurance Co v Dodd).

Whether those who propose the scheme do not in their application to the court distinguish each such group (to be consulted separately) the court will at the final decision stage withhold its approval on the ground that there has not been fair and proper consultation.


Related Discussions:- Unsecured trade creditors

Mischief rule, Mischief rule: "Four things are to be considered and di...

Mischief rule: "Four things are to be considered and discussed:; (i) First is 'what was the common law earlier than the making of the Act?' (ii) is 'what was the mischie

Unity and continuity of domicile, Unity and continuity of domicile Co...

Unity and continuity of domicile Conversely S.10 of the Act provides such no person may have more than one domicile at any one time and no person shall be deemed for be witho

Government estimate of the number of phoenix operators, Former Assistant Tr...

Former Assistant Treasurer Bill Shorten has cited estimates, based on ATO expertise, that there are 6,000 phoenix operators in Australia. It is recognised that this estimate is a ‘

#title., What is hire purchase?

What is hire purchase?

Describe the function and structure of iaea, Describe the function and stru...

Describe the function and structure of IAEA The function and structure of IAEA is defined in IAEA statute. IAEA has three main bodies: Board of Governors, General Conference a

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

Identified and create all contract, The Laws of Contract DSL Limited decide...

The Laws of Contract DSL Limited decide to buy a ferry on operate it between CMI and Downtown, Kingston. They did not have enough money to buy the vessel, so they borrow some from

Obiter dictum, Obiter Dictum Thus now  "by the way" statement made t...

Obiter Dictum Thus now  "by the way" statement made through a judge before delivering his judgement within  a view to  strengthening or re-enforcing his reasons to the decis

Removal of directors - company management, Removal of Directors: By s....

Removal of Directors: By s.185(1) a company may by ordinary resolution remove a director before the expiration of his period of office, but notwithstanding anything in the art

Illustrate the case of environmental taxes, Illustrate the case of environm...

Illustrate the case of environmental taxes Consider the case of environmental taxes. There is clear evidence that International Environmental Agreements (IEAs) suffers from an

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