GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
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09:53 Jul 11, 2011 |
English language (monolingual) [PRO] Bus/Financial - Law: Contract(s) | |||||||
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| Selected response from: benettfreeman United Kingdom Local time: 14:25 | ||||||
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uses its company as capital investment in another company Explanation: The list of options refers to ways in which the party would have reduced control over its own company, even to the point of no control ("sale"). So it seems likely that this somewhat ambiguous term is another way of having less control. One possibility would be by ceding the company in return for shares in another company, i.e. effectively a takeover by another company, but with payment in shares in the other company and not money (which would be a sale). |
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malinvestment of company 1's capital in another company's ventures, detrimental to company 2 Explanation: It seems to me that the agreement is worded so that it can be terminated if the other company (company 1) invest their capital in a 3rd company which is detrimental to the other (company 2) |
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their (financial) contributions to the basic capital of a new company Explanation: i think both companies are forming another , third, company for their ventures. the basic capital is required for incorporation of the third company. both companies have agreed on their shares of the third company. according to their shares, they have to pay up their (usually) financial contributions for the basic capital so that the third company could come into existence (upon registration into a companies register). both companies will then become founders/owners of the new company. |
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