Commentary

226 Setting aside company reorganisation as irregular reduction of capital

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

226 Setting aside company reorganisation as irregular reduction of capital

| Commentary

226 Setting aside company reorganisation as irregular reduction of capital

It has been suggested above that, even where the original company is wound up after the reorganisation, the court is unlikely, in the absence of some form of fraud or deception, to order the reorganisation to be set aside as a transaction at an undervalue or a transaction defrauding creditors unless there is lack of consent by some or all of the creditors. A liquidator may therefore be tempted to look around for other grounds to challenge the validity of the transaction or to seek some other form of relief

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