Corporate law Case Study

Masters
Case Study
Miscellaneous
Pages 10 (2510 words)
Download 0
Where company shares are redeemed or purchased wholly out of a company's profits, the amount by which the company's issued share capital is reduced on cancellation of the shares which are redeemed or purchased or on cancellation of shares held as treasury shares must be transferred to the capital redemption reserve (CRR).2 If the shares are redeemed or purchased from the proceeds of a fresh issue and the total amount of those proceeds is less than the total nominal value of the shares redeemed or purchased, the difference in amount must be transferred to the CRR…

Introduction

The exception to this is that the reserve may be applied by the company in paying up its unissued shares which are to be allotted to company members as fully paid bonus shares.
Further, if the permissible capital payment exceeds the nominal amount of the shares redeemed or purchased, the amount of any capital redemption reserve, share premium account or fully paid share capital of the company, and any amount representing unrealised profits of the company for the time being standing to the credit of any revaluation reserve, may be reduced by a sum not exceeding, or by sums not in the aggregate exceeding, the amount by which the permissible capital payment exceeds the nominal value of the shares.4
Where, however, the proceeds of a fresh issue are applied by a company in making any redemption or purchase of its own shares in addition to a payment from its capital under these provisions, the references to the permissible capital payment are to be read as referring to the total amount of that payment and those proceeds.
The CRR is mainly used to ens ...
Download paper
Not exactly what you need?

Related papers

Corporation Law case study
The second question concerns different articles of the corporate law. There is some information about the corporations' law. The main issue is if the selling of stocks and the responsibility of the directors. Its nesassry to tell a few words about dealing with outsiders. Also the seconde question deals with the problem of outsider trading.…
Company Law - corporate governance
The consequences when the policy of the company makes a director a victim or a loop hole in a law makes the company pay compensation for the victim on behalf of the employee can be examined. The points and the necessities found in the above study can form a back ground for the future changes in the law if any. 1…
Criminal Law: case study
The first one is Peter, who tried to force himself on the girl and kissed her and fondled her breast, without her consent. While, Frank is also an offender murdered and man slaughtered.…
law course (case study)
This puts Renault in a safe albeit embarrassing position. Nonetheless, Lyon's decision to sue Sherman for breach of contract may have some merit. On his part, Sherman could use the argument that he is not under any legal obligation to sell his business only to Lyon. He could strengthen his case if he has included the clause that the counteroffer is subject to cancellation by the present owner of…
Corporate Social Responsibility Case Study
Or the company may choose to externalize CSR operations by assisting environmental non-governmental organizations (NGOs) and concentrating on their business activities without actively getting involved with CSR issues.…
Corporate law Case Study
The exception to this is that the reserve may be applied by the company in paying up its unissued shares which are to be allotted to company members as fully paid bonus shares.…
corporate strategy case study
In those days, cross-Channel travel was not dominated by the leisure business as it is today. It was used for military action and primarily for trade.…