Offers of compromises and schemes of arrangements in South African company law

dc.contributor.advisorBlackman, Michael
dc.contributor.authorKralik, Florian
dc.date.accessioned2023-09-14T13:39:15Z
dc.date.available2023-09-14T13:39:15Z
dc.date.issued1997
dc.date.updated2023-09-14T13:38:58Z
dc.description.abstractThere are many different reasons why people want to acquire companies. Although takeovers are an extremely dangerous and high risk game, they are becoming more and more numerous in the modern business world. An acquiror, however, tries to minimize his risk by trying to take over a company with a scheme of arrangement applying section 311 of the South African Companies Act, which gives him the necessary tool to takeover a 'clean' company without unknown creditors. That means that such a scheme must be a compromise or arrangement 'between the company and its creditors' before it can be sanctioned by court and therefore becomes binding on all the creditors, whether they are known or unknown. At least 3/4 of the creditors votes and numbers must support the arrangement. To draft a scheme for this reason alone, however, would not be a big problem. What makes these takeovers so sophisticated is that every acquiror also wants to profit from the assessed loss of the target company, which is often available. Therefore to draft a scheme, which, on the one hand complies with section 311 of the Companies Act, and on the other hand, does not comply with section 20 (1) (a) (ii) of the Income Tax Act in order to profit from the assessed loss, makes the scheme industry difficult.
dc.identifier.apacitationKralik, F. (1997). <i>Offers of compromises and schemes of arrangements in South African company law</i>. (). ,Faculty of Law ,Department of Commercial Law. Retrieved from http://hdl.handle.net/11427/38656en_ZA
dc.identifier.chicagocitationKralik, Florian. <i>"Offers of compromises and schemes of arrangements in South African company law."</i> ., ,Faculty of Law ,Department of Commercial Law, 1997. http://hdl.handle.net/11427/38656en_ZA
dc.identifier.citationKralik, F. 1997. Offers of compromises and schemes of arrangements in South African company law. . ,Faculty of Law ,Department of Commercial Law. http://hdl.handle.net/11427/38656en_ZA
dc.identifier.ris TY - Master Thesis AU - Kralik, Florian AB - There are many different reasons why people want to acquire companies. Although takeovers are an extremely dangerous and high risk game, they are becoming more and more numerous in the modern business world. An acquiror, however, tries to minimize his risk by trying to take over a company with a scheme of arrangement applying section 311 of the South African Companies Act, which gives him the necessary tool to takeover a 'clean' company without unknown creditors. That means that such a scheme must be a compromise or arrangement 'between the company and its creditors' before it can be sanctioned by court and therefore becomes binding on all the creditors, whether they are known or unknown. At least 3/4 of the creditors votes and numbers must support the arrangement. To draft a scheme for this reason alone, however, would not be a big problem. What makes these takeovers so sophisticated is that every acquiror also wants to profit from the assessed loss of the target company, which is often available. Therefore to draft a scheme, which, on the one hand complies with section 311 of the Companies Act, and on the other hand, does not comply with section 20 (1) (a) (ii) of the Income Tax Act in order to profit from the assessed loss, makes the scheme industry difficult. DA - 1997 DB - OpenUCT DP - University of Cape Town KW - law LK - https://open.uct.ac.za PY - 1997 T1 - Offers of compromises and schemes of arrangements in South African company law TI - Offers of compromises and schemes of arrangements in South African company law UR - http://hdl.handle.net/11427/38656 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/38656
dc.identifier.vancouvercitationKralik F. Offers of compromises and schemes of arrangements in South African company law. []. ,Faculty of Law ,Department of Commercial Law, 1997 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/38656en_ZA
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Commercial Law
dc.publisher.facultyFaculty of Law
dc.subjectlaw
dc.titleOffers of compromises and schemes of arrangements in South African company law
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelLLM
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