| Commentary

43 Introduction

| Commentary

3: EMPLOYMENT-RELATED SECURITIES

43 Introduction

Many takeovers and company reorganisations will include the issue of new shares to some of the parties involved. For instance, where one company takes over another by share purchase, it is common for the sellers of the target company to receive payment for their shares wholly or partly in the form of shares or other securities in the buyer under a share-for-share exchange. In the case of a management buy-out, the usual course of action is for the managers and the investor or investors to set up, and subscribe for shares in, a holding company to

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