financial assistance Flashcards
1
Q
what is financial assistance
A
when a target provides financial assistance for the purchase of its own shares. By way of:
- Loan
- Gift
-guarantee, security, waiver - indemnity
can be given before, during or after acquisition
2
Q
who is prohibited from providing the assistance
A
Public Target- Target and all its Private and public subsidiaries
Private- all its Public subsidiaries
2
Q
who is prohibited from providing the assistance
A
Public Target- Target and all its Private and public subsidiaries
Private- all its Public subsidiaries
3
Q
What exceptions exist?
A
- the principal pu
4
Q
what are the consequences of FA?
A
Acquisition is void and company/ board face fine and prison for up to 2 years
