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Going Broke

PostPosted: Sun Aug 26, 2012 7:40 pm
by keith
If a company puts a proposition to the Shareholders and says "don't give us the required majority and we'll go into liquidation"

So the shareholders don't give the majority, how can the board and the major creditors ( Banks) then proceed. ( surely the board don't exist as the company doesn't and all decisions are up to the Administrators )

It appears to me to be a complete fix, in that the Administrators within hours ( maybe minutes ) have sold the company to a NEWCO with the same board etc that will just go ahead as they wanted. How do they ( the administrators ) know they won't get a better offer elsewhere.

Also if the company has a contract that says in the event of the company going into administration the employees will be transferred back to a local Authority ( who they were outsourced from ) Are the employees transferred back even if the administration is temporary.

Re: Going Broke

PostPosted: Sun Aug 26, 2012 10:12 pm
by Nick
I think the answer is yes and yes.