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Satisfactory Essays
KENYATTA UNIVERSITY SCHOOL OF BUSINESS. SUBMISSION DATE; 12.02.2016 UNIT NAME; BANKRUPTCY AND REORGANIZATION. UNIT CODE; BAC 306. LECTURER; MEMBER REGISTRATION NUMBER PHONE NUMBER SIGNATURE OLIVER MAINA MUCHIRI D33/1317/2013 0720986782 HINGA KELVIN GICHUHI D33/1506/2013 0706503330 CHEPKEMOI RUTH MAKOR D33/1455/2013 0724895863 CHERONO MERCY D33/1482/2013 0707550615 KIPNGETICH KOSGEI KEVIN…show more content…
* Incase of serious financial and operating problems such as loss of a major customer or the danger of imminent bankruptcy. * It is proposed in order to provide the company with more flexibility in possible future fundraisings. * To allow the company to reduce certain costs associated with maintaining a large shareholder register in particular printing, postage and registrar’s cost. * It also helps the company in ensuring that it stays competitive in the market. * If a corporation wishes to issue a class of non-voting shares to investors but only has common shares outstanding. The reorganization may involve the disposition of its existing shares in exchange for other shares of the corporation. * It ensures reduction of the number of ordinary shares in circulation. * It provides the mechanism that makes capital payment tp the shareholders (return of capital or capital distribution). * It is a prelude to downsizing the company. * It is important if the company wants to go global regarding its business operations. * To make a reduction in the company’s market capitalization. REFERENCES 1. Kenyan law/ gazette 2. Reorganization plan “west encyclopaedia of American law. 2005. Encyclopaedia.com 3. “Clash on new bill on an organization.” New york times. March 3, 1939. 4. “Executive reorganization, senate approval,” New York Times. March
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