Commentary

44 Legal obligations

BANKING vol 4(1)
| Commentary

44 Legal obligations

| Commentary

44 Legal obligations

Other wording actually creates legal obligations, which may be strong or weak from the beneficiary’s point of view, eg:

  1. 44.1

        An undertaking by a parent company ‘to maintain its present participation to its subsidiary’ would be construed as an undertaking not to reduce its shareholding in the subsidiary. It would not preclude the parent company from taking money out of the subsidiary by way of normal dividend.

  2. 44.2

        An undertaking by a parent company to ‘exercise its influence on its subsidiary so that the subsidiary meets its financial obligations’ is rather more difficult to interpret because a

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