Business goes bust, obligations?

[Paddy]

Chef you'll like this one.....


So imagine the scenario, a profitable business overstretchs themselves and goes tulip up. The company limps along and enters negotiations to "merge" part of it's business with other rivals. What obligations do they have to shareholders.

Just that I'm a shareholder in said company and I've not been notified formally of the break up and sale of its business units.

If you are a minority share holder; forget about it. If you and others (with your views) have more than 51% then you can do something. You can PM me with full details.

[TheFaQQer]

Was out with Dom last night, I think he was talking full payment for you guys in 2-3 months.

Either get a PM, or explain what you are on about.

[Manic]

yeah i got that email, i'm now down by £8k.. fat chance im gonna see that again for a long time..

Was out with Dom last night, I think he was talking full payment for you guys in 2-3 months.

[chef]

yeah i got that email, i'm now down by £8k.. fat chance im gonna see that again for a long time..

[Manic]

Luck didn't come into it, bad management did. It appears the said company have gone into admin, 2 million of balance, 4 million of liabilities. Shall not worry about my shares (

[BrilloPad]

A company going bust in this climate

who would have thought it - its a bit unlucky really

[NickFitz]

I have no knowledge or understanding of these matters, and your question is unclear to the point of ambiguity on many crucial points. Still, if you were seriously concerned you'd ask an expert rather than posting on CUK, so here goes:

The company has a duty to act in the best interests of its shareholders. Given the venial nature of the society we have made for ourselves, "best" is universally accepted as meaning "most lucrative" (the fallacy is obvious, but that's by-the-by).

If whatever they're up to is likely to improve the financial status of the company in such a way as to benefit the shareholders, they don't really have to tell you about it - you are presumed to care only about the value of your investment, and the dividends that may accrue to you. How that value or those dividends arise is none of your business.

It might be considered courteous of them to let you know that they're divesting themselves of their turnip-pulverising activities so they can focus more closely on the herring-gutting aspect of the business; but unless such changes are likely (in the view of the board) to "impact" (the modern word for "damage") shareholders' interests, there's not really any reason for them to let you know, any more than they should let you know that they changed stationery suppliers and thus halved their annual expenditure on paperclips.

But as I made clear at the start, I could be talking rubbish here. Maybe they are required to tell you all about their paperclip purchases

[Manic]

Chef you'll like this one.....


So imagine the scenario, a profitable business overstretchs themselves and goes tulip up. The company limps along and enters negotiations to "merge" part of it's business with other rivals. What obligations do they have to shareholders.

Just that I'm a shareholder in said company and I've not been notified formally of the break up and sale of its business units.