The Law of Corporate Finance: General Principles and EU Law: Volume III: Funding, Exit, Takeovers

7.3 Legal Risks 313 monies that it has invested in A’s shares, and B may not be able to recover the sums that A owes to B any mo ...

8 Exit: Introduction 8.1 General Remarks Returning funds to investors is the third of the four big decisions that can influ- enc ...

316 8 Exit: Introduction Exit from the perspective of the firm, exit as an investment. From the perspec- tive of the firm, retur ...

8.2 Exit from the Perspective of the Investor 317 Conversion. Third, the claims can be converted into other claims without the f ...

318 8 Exit: Introduction In a limited-liability company, the main rule is that a shareholder can write down the value of shares ...

8.3 General Remarks on the Management of Risk 319 cretion. A high level of managerial discretion can help to mitigate the advers ...

320 8 Exit: Introduction Termination and acceleration clauses. Termination clauses, acceleration clauses and similar clauses set ...

8.3 General Remarks on the Management of Risk 321 pyramid structures or cross shareholdings, general voting caps for shareholder ...

322 8 Exit: Introduction shareholders and a strict rule on the equivalent treatment of shareholders can sig- nal lower risk to m ...

8.3 General Remarks on the Management of Risk 323 If existing shareholders keep their shares and promise not to exit the firm in ...

9 Exit of Different Classes of Investors 9.1 General Remarks The management of risk depends on the type of investment. Also the ...

326 9 Exit of Different Classes of Investors asset, the firm may have a legal obligation to return the asset or cease using it. ...

9.3 Exit of Debt Investors 327 erally, usual constraints can be based on contracts, provisions of the law of prop- erty, insolve ...

328 9 Exit of Different Classes of Investors 9.4 Exit of Shareholders The exit of a shareholder in his capacity as shareholder d ...

10 Exit of Shareholders 10.1 Introduction In a limited-liability company, the exit of shareholders is constrained by a large num ...

330 10 Exit of Shareholders they vary class rights;^4 and the reduction of subscribed capital requires compliance with a credito ...

10.2 Cash Payments by the Company 331 10.2.2 Dividends and Other Distributions The payment of dividends is one of the main ways ...

332 10 Exit of Shareholders dividends and of interest relating to shares.^12 There are similar constraints on the payment of int ...

10.2 Cash Payments by the Company 333 Acts”.^20 The interpretation of the term distributions under the Companies Act 2006 there- ...

334 10 Exit of Shareholders silent on who may declare a dividend and thus does not require the dividend to be declared by shareh ...