Dissenting Shareholders:Accounting Treatment
In this video I will discuss power and accounting treatment to deal with dissenting shareholder by solving one practical problem.
Dissenting Shareholders means the holders of Shares who have validly exercised and not effectively withdrawn or lost their rights to dissent from the Merger, or dissenter rights, pursuant to Section 238 of the Cayman Companies Law.
Examples of Dissenting Shareholders in a sentence The reasoning behind needing a concerted effort for understanding and improving CRISPR technologies is to ensure both the integrity of the human species and contemplate the serious social, ethical, philosophical, and theological consequences of the technology, because 'such great consequences require deep reflection'
Dissenting Shareholders who wish to exercise such rights are advised to seek their own independent legal advice. Dissenting Shareholders and holders of Shares or ADSs who are untraceable who subsequently wish to receive any monies otherwise payable in respect of the Merger within applicable time limits or limitation periods will be advised to contact the Surviving Company.
Dissenting Shareholders and holders of Ordinary Shares who are untraceable who subsequently wish to receive any monies otherwise payable in respect of the Merger within applicable time limits or limitation periods will be advised to contact the Surviving Company.
Power and duty to acquire shares of shareholders dissenting from scheme or contract approved by majority.
(1) Where a scheme or contract involving the transfer of shares or any class of shares in a company to another company has, within four months after the making of the offer in that behalf by the transferee company, been approved by the holders of not less than nine- tenths in value of the shares whose transfer is involved the transferee company may, at any time within two months after the expiry of the said four months, give notice in the prescribed manner to any dissenting shareholder, that it desires to acquire his shares; and when such a notice is given, the transferee company shall, unless, on an application made by the dissenting shareholder within one month from the date on which the notice was given, the Court thinks fit to order otherwise, be entitled and bound to acquire those shares on the terms on which, under the scheme or contract, the shares of the approving shareholders are to be transferred to the transferee company: Provided that where shares in the transferor company of the same class as the shares whose transfer is involved are already held as aforesaid to a value greater than one- tenth of the aggregate of the
values of all the shares in the company of such class, the foregoing provisions of this sub- section shall not apply, unless-
(a) the transferee company offers the same terms to all holders of the shares of that class transfer is involved; and
(b) the holders who approve the scheme or contract, besides holding not less than nine- tenths in value of the shares whose transfer is involved, are not less than three- fourths in number of the holders of those shares;
(2) Where, in pursuance of any such scheme or contract as afore- said, shares, or shares of any class, in a company are transferred to another company or its nominee, and those shares together with any other shares or any other shares of the same class, as the case may be, in the first- and 1 the transferor company shall--
(a) thereupon register the transferee company as the holder of those shares. and
(b) within one month of the date of such registration, inform the dissenting shareholders of the fact of such registration and of the receipt of the amount or other consideration representing the price payable to them by the transferee company:] Provided that an instrument of transfer shall not be required for any share for which a share warrant is for the time being outstanding.
(4) Any sums received by the transferor company under this section shall be paid into a separate bank account, and any such sums and any other consideration so received shall be held by that company in trust for the several persons entitled to the shares in respect of which the said sums or other consideration were respectively received.
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