| Commentary

258 Requirement for valuation

| Commentary

258 Requirement for valuation

In a merger by absorption or transfer to a new company, the transferee company issues new shares in itself as consideration for the whole or part of the transferor company’s assets and undertaking which is transferred to it. This is also the case for each of the transferee companies to which assets and liabilities of a transferor company are allocated in a division. It therefore follows that the transferee company has accepted consideration other than cash for the allotment of its shares. If the transferee company is a public company, it is prima facie obliged, before

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