reconstruction of a company
The transfer of the property of a registered company in a voluntary winding-up to another company in exchange for shares in that company to be distributed among members of the company in liquidation. The liquidator effects the reconstruction with the authority of a special resolution (members’ voluntary winding-up) or the consent of the court or liquidation committee (creditors’ voluntary winding-up). A member who does not agree to the arrangement can require the liquidator to buy his shares. See also scheme of arrangement. |