Thursday, August 29, 2019

Question In July 2012, in exercising its powers under the EU Markets Essay

Question In July 2012, in exercising its powers under the EU Markets in Financial Instruments Directive (MiFID), UK Financial Se - Essay Example The market would therefore have been a highly competitive one with fewer shares to be traded among several shareholders. The case of survival of the fittest would have therefore arisen. In their bid to acquire London Metal Exchange Ltd, Honk Kong Exchange Investment was mandated to satisfy the provisions of the scheme of arrangement under Part 26 Companies Act 2006, which addresses the issue of legislation to loans and debt. This procedure was necessitated for a number of legal reasons and interpretations. Commonly, it is noted that the need of scheme of arrangement arises for companies such as Hong Kong Exchange Investment to make compromise with its key stakeholders on issues regarding solvent company’s reconstruction. ... cy and solvency Act4, it is very important to stress the fact that the scheme of arrangement is not in place to conceptualize a company’s scheme to become insolvent. With this said, the analysis can well continue on the provisions of the scheme of arrangement involved in the case of Hong Kong Exchange Investment as it would now be known that the scheme of arrangement was entered only as a cost shedding strategy and not as a means of announcing the company’s likelihood to become insolvent. Outcome and implications of the court approval for stakeholders Even though back in July 2012 the United Kingdom Financial Services Authority had exercised its powers under the European Union Markets in Financial Instruments Directive under the 2004/39/EC of the Markets in Financial Instruments Directive (MiFID) to approve Hong Kong Exchange Investment’s acquisition of London Metal Exchange Ltd, the process was somewhat put in a limbo as a court petition was undertaken for the c ourt to sanction the Scheme that had been started and to give a legislative confirmation to the related capital reduction5. This court petition was in reaction to the approved purchasing capital of ?1.39 billion that had been granted earlier. This court case was heard on 5 December 2012 and the issues of the court had it that Hong Kong Exchange Investment was cleared to main its capital base for the acquisition. As part of the issues considered by the court was the remaining conditions to the transaction that had been set out in the Scheme Document. Earlier, the purchasing company, which was Hong Kong Exchange Investment, had fully satisfied condition 1(a) found in Part III of the scheme document that touches on the transaction that had taken place far back on 9 July 2012. Completion of the transaction

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