Comparing the legal mechanisms of redemption of shares, repurchase of shares, and reduction of capital by special resolution, which mechanism is the m
-
- Taschenbuch
- eBook ausgewählt
-
Form:Einzelkauf Download
-
Sprache:Englisch
13,99 €
inkl. gesetzl. MwSt.Beschreibung
Produktdetails
Format
Kopierschutz
Nein
Family Sharing
Nein
Text-to-Speech
Nein
Erscheinungsdatum
24.06.2019
Verlag
GRINSeitenzahl
18 (Printausgabe)
Dateigröße
499 KB
Auflage
1. Auflage
Sprache
Englisch
EAN
9783668964082
Essay from the year 2019 in the subject Law - Civil / Private, Trade, Anti Trust Law, Business Law, grade: A, University of Edinburgh (Edinburgh Law School), course: Company Law, language: English, abstract: In the lifecycle of a company there are situations in which the company may wish to return assets to its members. The most common option is the distribution of capital by way of a dividend. However, the company is not entirely free in this respect as the diminution of the company's assets would undermine creditor protection. Thus, the Companies Act 2006 provides for capital distribution rules which limit the amount a company can distribute to its members. Furthermore, the company may also consider to redeem or repurchase shares. This may be the case, for example, if the company wants to return unneeded equity capital to its members because it can finance its investments out of generated profits, or it wants to replace equity financing with debt financing. In addition, the management may want to buy out a reluctant group of shareholders, or give shareholders the opportunity to exit the company. By contrast, a company may reduce the amounts stated in the capital accounts either to reflect a diminution of the asset value or when the equity capital is over the company's needs. The Companies Act 2006 provides specific procedures for each of these mechanisms to ensure that the interests of creditors and shareholders concerned are adequately protected and that the capital distribution rules cannot simply be circumvented.
In this essay, I will compare the legal mechanisms of redemption of shares, repurchase of shares and reduction of capital by special resolution. First of all, I will discuss the general prohibition of acquiring own shares. The following chapters then deal with the individual mechanisms and highlight the extent to which they effectively serve the principle of capital maintenance. When analysing which mechanism is the most effective one, the focus is on creditor protection, since this is ultimately the primary objective of capital maintenance. However, when considering effectiveness, the interests of shareholders as well as the practicability must also be taken into account.
In this essay, I will compare the legal mechanisms of redemption of shares, repurchase of shares and reduction of capital by special resolution. First of all, I will discuss the general prohibition of acquiring own shares. The following chapters then deal with the individual mechanisms and highlight the extent to which they effectively serve the principle of capital maintenance. When analysing which mechanism is the most effective one, the focus is on creditor protection, since this is ultimately the primary objective of capital maintenance. However, when considering effectiveness, the interests of shareholders as well as the practicability must also be taken into account.
Kundinnen und Kunden meinen
Verfassen Sie die erste Bewertung zu diesem Artikel
Helfen Sie anderen Kund*innen durch Ihre Meinung
Kurze Frage zu unserer Seite
Vielen Dank für Ihr Feedback
Wir nutzen Ihr Feedback, um unsere Produktseiten zu verbessern. Bitte haben Sie Verständnis, dass wir Ihnen keine Rückmeldung geben können. Falls Sie Kontakt mit uns aufnehmen möchten, können Sie sich aber gerne an unseren Kund*innenservice wenden.
zum Kundenservice