company law. contrasting information. capitalisation

CONTRASTING INFORMATION.

And OTHER IMPORTANT “ILEC” TOPICS:CAPITALISATION.

A—----

CONTRASTING INFORMATION SCHEMES.

In contrast to As

opposed to-Unlike

B---------, BODY.

In contrast to

As opposed to-Unlike

--------A, B---------, BODY.

A,-----------B, --------Body, BODY.

CONTRASTING INFORMATION SCHEMES.

In contrast to

As opposed toUnlike

WhichWho

where

In contrast to

As opposed toUnlike

B, WhichWho

whereBody, B BODY.

CAPITALISATION

.

ISSUE SHAR

ES

OFFER NEW

SHARES TO

EXISTING SHAREHO

LDERS

CAPITALISATION

Pre-empttion rights

Waive

p.e.r. by special resolution.

SHAREHOLDERS

COMPANY

LOAN CAPITAL:DEBENTURES.

DEB

ENTU

RES

FIXED CHARGE.

DEB

ENTU

RES

FLOATING CHARGE.

OR:

EN ARGENTINA: ley 23.576 OBLIGACIONES NEGOCIABLES y Art. 325 ley 19.550

Sociedades por acciones, cooperativas y asociaciones civiles pueden contraer empréstitos mediante la emisión de obligaciones negociables (art. 1).

Garantía FLOTANTE, ESPECIAL O COMUN. (art. 3) GARANTIA COMUN O ESPECIAL: su privilegio se

limita a uno o varios inmuebles. GARANTÍA FLOTANTE: no se limita a inmuebles.

DEBENTURES/ LOANS.

LEY 19.550 ART. 186 y s.s. Art. 186: CONTRATO DE SUSCRIPCION de

CAPITAL:

NORMAS EN LA LEY DE SOCIEDADES 19.550

INTEGRACION MINIMA DEL 25 % EN EFECTIVO PUEDE

HABER AUMENTOS DE CAPITAL SOCIAL HASTA EL QUINTUPLO.

Art. 188

Art. 187

SUSCRIPCION PREFERENTE. Art. 194 (= PRE-EM.RIGHTS)

An issue of new shares

for cash.To existing

shareholders.

Shares are issued

proportionally

Good way of raising new cash

from shareholders

Rights issue must be made BEFORE

making a new issue to the public.

From the LISTENING: A RIGHTS ISSUE.

When a shareholder takes up the pre-emption rights,

He can maintain his existing percentage holding in the company.

Sometimes Shareholders waive their rights and sell them to others.

Other times, Shareholders VOTE TO CANCEL their pre-emption rights.

The price of the share is much lower than the market price of the shares. Discounts up to 20 or 30 per cent.

LEGAL AND ECONOMIC REASONS FOR THE PRE-EMPTION RIGHTS.