compulsory sale

Dealing with untraceable shareholders under the compulsory sale procedures is more troublesome.

Negotiations also began for the compulsory sale of vast Roman Catholic Church holdings.

This is less than the 90 per cent level of acceptances required for a compulsory sale of minority interests under CA 1985, s429 following a takeover offer.

A Court Scheme accordingly represents an alternative method to a compulsory sale under CA 1985, s429 of compelling dissenting minority shareholders to sell their shares.

Faced with the prospect of a compulsory sale, British Railways now broke off negotiations with the Association and agreed to sell the line to the Council.

He was expected to make a final offer to City, believed to be based around a loan util the end of the season and then a compulsory sale, with certain conditions attached.

For instance, the acceptance condition is often set at 90 per cent of the shares to which the offer relates in order to invoke the compulsory sale procedures under CA 1985, s429.

The Tribunal can also order the sale of land for redevelopment purpose under the Land (Compulsory Sale for Redevelopment) Ordinance (Cap.

A presidential decree of Nov. 2 ordered the compulsory sale by enterprises in 1991 of 40 per cent of their hard-currency earnings to the Bank for Foreign Economic Relations, to help repay the Soviet Union's foreign debt.

Accordingly, in Barley Marketing Board (NSW) v Norman, it was held that the compulsory sale of barley to a State marketing board did not contravene s. 92, as the grain had not yet entered interstate trade.

For instance, if a known dissentient minority shareholder holds more than 10 per cent but less than 25 per cent of the target's voting rights, a Court Scheme might succeed in achieving a 100 per cent acquisition where a compulsory sale would fail.

This is in contrast to the compulsory sale procedures under CA 1985, s429 where, although market purchases made before the posting of the offer document cannot count towards the 90 per cent threshold, purchases afterwards may be counted provided they do not exceed the offer price.

Where a cash underwritten alternative has been offered, but closed early to save underwriting costs, the offeror will, in order to take advantage of the compulsory sale procedure, need to find the cash itself in order to pay minority shareholders (see paras 13.4.3 and 13.3.5 below).

EUROPE BRITAIN: SCOTTISH LAND REFORM - The Government proposed a reform of Scotland's feudal land-owning system that would include the compulsory sale of mismanaged estates.

The Company shall not pay the purchase money to a Defaulting Member until he shall in respect of the shares being the subject of the Compulsory Sale Notice have delivered his share certificates or a suitable indemnity and the necessary transfers to the Company.

An alternative method of compelling minority shareholders to sell their shares in similar circumstances is to use a Court Scheme (see para 2.4 above) if that is appropriate (where the 75 per cent threshold may be easier to achieve than the 90 per cent threshold required for a compulsory sale).

(4) An offeror will not know whether there is any opposition to the compulsory acquisition of the minority (minority shareholders have the right to object to the court under CA 1985, s430C) until he has acquired 90 per cent of the shares to which the offer relates and served the compulsory sale notices.

Accordingly, it is agreed that the smaller company will make a share exchange offer for the larger company, which, hopefully, will result in 90 per cent acceptances from the larger company's shareholders and the implementation of the compulsory sale procedures, thereby enabling the smaller company to obtain 100 per cent control.