| Commentary

230 Form of consideration

| Commentary

230 Form of consideration

The form of the consideration to be given by the purchasing company for the sale of the whole or part of the original company’s undertaking will usually be specified by the special resolution sanctioning the sale in a members’ voluntary winding up, or the terms of the contract entered into by the liquidator with the purchasing company in a creditors’ voluntary winding up. In most cases, this consideration will consist of fully-paid shares, although it is quite acceptable for the purchasing company to provide partly-paid shares, even though the original company’s shares are fully-paid1. The reason

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