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

Describe the kind of organisation, Question: (a) Describe the kind of ...

Question: (a) Describe the kind of organisation that you would be willing to work for as a Professional. (b) As a practicing Professional, what body of knowledge, skills

Online exam in Business Law, #questonline exam of business law about 20 qes...

#questonline exam of business law about 20 qestions ( T and F , MC, and short answers ) The exam will open just for two hours The exam will start half of hour from now >> can yo

Challenging an arbitral award, Challenging an Arbitral Award Conversel...

Challenging an Arbitral Award Conversely a party dissatisfied through an arbitral award any challenge that it in the High Court and the High Court might set it aside whether i

Elements of a contract - offer, Elements of a Contract - Offer Further...

Elements of a Contract - Offer Further this is an unequivocal manifestation through one party of its intention to contract into another. So well it is a clear intimation for i

Civil case - african customary law, Civil Case - African Customary Law ...

Civil Case - African Customary Law Moreover customary law is applicable only in civil cases.  Thus the District Magistrate's Court's Act 1967, S.2 restricts the civil case

Explain about international civil aviation organization, What is Internatio...

What is International Civil Aviation Organization The Chicago Convention on International Civil Aviation 1944 governs and regulates the laws of air space and outer space. Furth

What is codifying treaty, What is Codifying treaty Codifying treaty, me...

What is Codifying treaty Codifying treaty, meaning whereby, certain existing customary laws are codified in order to develop international law and make it binding between the s

Explain the term - policy change, Explain the term - Policy change The ...

Explain the term - Policy change The role of the policy entrepreneur has several implications for our understanding of the policy process. While social scientists often look to

Determine the term - real income effects, Determine the term - Real Income ...

Determine the term - Real Income Effects This linkage between countries takes place through the current account of the balance of payments. It occurs when a change in one count

Law for Business organisation, The concept of separate legal personality is...

The concept of separate legal personality is fundamental to company law. With close reference to leading cases, explain this concept and its relationship to the doctrine of limit

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