Takeovers Flashcards
1
Q
Takeovers
What is a ‘Share For Share’ Exchange Also Called?
A
A ‘Paper For Paper’ Exchange.
Swapping a Piece of Paper, i.e., a Share Certificate.
2
Q
Takeovers
What Are The CGT Implications of a ‘Share for Share’ Exchange?
A
Treated as if No Disposal Takes Place.
3
Q
Takeovers
What Benefit is Attached to Ordinary Shares?
A
Voting Rights.
(The Ability to Vote at Company Meetings)
4
Q
Takeovers
What is a s.169Q Claim?
A
Disapplying The ‘Share For Share’ Exchange Rules.
To Benefit From BADR.
5
Q
Takeovers
What is The Advantage of Making an s.169Q Claim?
A
The Base Cost of The New Shares Are ‘Uplifted’.
(Market Value at Takeover)
6
Q
Takeovers
What is The Disadvantage of Making a s.169Q Claim?
A
A CGT Liability Arises.
May Not Have Enough Liquid Funds to Offset.
