Haven't found the Essay You Want?
For Only $12.90/page

Armour Hicks Northern Essay

B (Parent Company) is consisting of three shareholders , which are directors of B & A ( Mr Whitehouse & Mr Hick= 3000 shares and C= 7000 shares ). B was in debt with C (Vendor Company), amounting to ₤93000. For the full repayment of debt in B, C agreed to transfer it’s shares to directors of B & A at par value, provided if indebtedness to them is fully discharged. So, directors of B & A arranged A(Subsidiary) to pay for the debt. Consequently, this share transfer made directors of B & A as the sole shareholders of B. Subsequently, A and B went into liquidation.

The liquidators took action against C and directors of B & A, on behalf of A for the return of the ₤93000. Issue : Whether Armour Hick Northern Ltd (subsidiary)has given a financial assistance to Armour Trust Ltd through the repayment of debt (₤93000), for the purpose or in connection with the purchase of the shares in Armour Hick & Partners Ltd (parent), in regards of purchase by directors of both companies? PRINCIPAL : Section 67(1)

Dealing by a company in its own shares

Except as is otherwise expressly provided by this Act no company shall give, whether directly or indirectly and whether by means of a loan, guarantee or the provision of security or otherwise, any financial assistance for the purpose of or in connection with a purchase or subscription made or to be made by any person of or for any shares in the company or, where the company is a subsidiary, in its holding company or in any way purchase, deal in or lend money on its own shares.

Essay Topics:

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email. Please, specify your valid email address

We can't stand spam as much as you do No, thanks. I prefer suffering on my own

Courtney from Study Moose

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out