Class notes
Mercantile law 443
- Course
- Advanced company law
- Institution
- Stellenbosch University (SUN)
Advanced company law notes with case sumaries
[Show more]
1 review
By: 21322392 • 4 year ago
Content preview
Fundamental transactions1 General introduction:
Dealing with chapter 5 of Companies Act
There are not many sections are expected to read the provisions of chapter 5.
Example:
You have extra funds and want to buy a company. You want to own the company usually
because it is a successful company with potential.
There is a company that you want to own ---> target company
2 Terminology:
Target: this is the company that you want to own.
How do you go about obtaining this company?
Make an offer
- What are you offering to buy if you make an offer to a company?
Hoping to buy the business of the company and the goodwill that goes with it.
Is there another way of achieving objective?
Buy the shares in the company
Thus two ways of obtaining a company:
1. Buy the business of the company:
Approach the company because in that transaction, the seller will be the company because
the company owns the assets of the business and the goodwill.
To do this you would start a new company in which you are the shareholder and that company
purchases the target company
2. Buy the shares in the company:
Buy the shares from the shareholders
The company is essentially not involved in this transaction and is not a party to the
transaction in the strict sense.
Buyer will go directly to shareholders
In the economic sense, the same result is achieved.
NB: the different routes may have distinct legal consequences.
In either of these scenarios, the position of the shareholders is of paramount importance.
Why?
Either way they will be affected but more than that the effect is potentially that economically
their interests will be terminated
E.g. either their shares are bought or bought the assets, the entire company or nothing
remains.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller llbnotes. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now