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April 17, 2018 at 7:41 pm
“it’s mean offer can made world wide”
“There are two statement in one variant you said private company can offer non cash consideration but public cannot.And in English variant you said both can”
This is not a question that relates to the lecture above! In future please post your non-lecture orientated questions on the Ask ACCA Tutor forum
However, I sincerely hope that I haven’t said that … there are two things that are incorrect in your post:
1) In English company law it is legal for a PRIVATE company to issue shares in exchange for non-cash consideration and, anomalously, it is not a requirement for that non-cash consideration to be independently professionally valued.
A public company that wishes to issue shares in exchange for non-cash consideration needs to have an independent professional valuation of that non-cash consideration to confirm that the value is not less than the nominal value of the shares to be issued
The point here is that BOTH public and private may issue shares in exchange for non-cash consideration but only a public company has to have an independent professional valuation of that non-cash consideration
2) “you said private company can offer non cash consideration” – I said (or should have said) that a private company can ISSUE shares in exchange for non-cash consideration (not “offer non cash consideration” as you have posted)
April 17, 2018 at 9:16 pm
Thanks Sir for clarification and in future will post in relevant lecture. But now with connection to this discussion please guide if in non cash consideration a member or Director said the property which is in consideration is overvalued .Then what descision would be.
April 18, 2018 at 7:15 am
Tell me if I’m wrong on this … you say that “in future will post in relevant lecture” and yet you’ve posted again on this thread. Your question would be better placed in the comments section under the relevant lecture or, probably better still, in the Ask ACCA Tutor forum for F4!
However, if it’s a public company that is receiving the property, there would need to be an independent valuation by the company’s auditor or someone qualified to be the company’s auditor
If it’s a private company that is receiving the property, there is no legal requirement for such an independent valuation to take place
Practically speaking, if it’s a director of a private company making the assertion about over-valuation, s/he should insist on an independent valuation
If it’s a member of a private company … unless they have some significant influence, their opinion will not count for much so the situation will simply result in an unhappy member
April 16, 2018 at 6:44 pm
In this lectures the lecturar said offer can be made world wide but when I licent same. Lecturar on same topic in English variant where he said offer cannot made world wide due to legal binding restrictions. Please clarify this point
April 16, 2018 at 7:38 pm
I almost certainly did NOT say that an offer could not be made to the World at large
That was one of 5 defences raised in the case Carlill v Carbolic Smoke Ball Company … and, although it had never previously been thought possible, the Carlill case established that it was, in fact, possible
The situation of cases involving rewards clearly shows that offers to the whole World ARE possible
April 17, 2018 at 6:47 pm
Thanks Sir it’s mean offer can made world wide. One more question in English variant and global variant regarding share sale non cash consideration.There are two statement in one variant you said private company can offer non cash consideration but public cannot.And in English variant you said both can
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