Legal capital: being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries
Gespeichert in:
| Hauptverfasser: | , |
|---|---|
| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
Westbury, NY
Foundation Press
1990
|
| Ausgabe: | 3. ed. |
| Schriftenreihe: | University textbook series
|
| Schlagworte: | |
| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | XV, 213 S. |
| ISBN: | 0882777998 |
Internformat
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| 245 | 1 | 0 | |a Legal capital |b being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries |c by Bayless Manning with James J. Hanks |
| 250 | |a 3. ed. | ||
| 264 | 1 | |a Westbury, NY |b Foundation Press |c 1990 | |
| 300 | |a XV, 213 S. | ||
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Datensatz im Suchindex
| _version_ | 1804120868678270976 |
|---|---|
| adam_text | SUMMARY OF CONTENTS
Page
Acknowledgements v
Non Preface vii
INTRODUCTION 1
FIRST PART. LEGAL CAPITAL DOCTRINE
CONSTRUCTING THE LABYRINTH
SUBPART ONE: LEGAL CAPITAL DOCTRINE—EXPOSITION
Chapter
I. The Problem—Corporate Creditor and Corporate Shareholder 5
II. Legal Capital—Development of the Key Concept 20
III. Regulating the Shareholder s Contribution 44
IV. Regulating Distributions to Shareholders.... 63
V. A Preliminary Evaluation of Legal Capital Statutes.. 91
VI. Creditor Protection Outside the Legal Capital Statutes 98
VII. End Question 115
SUBPART TWO: LEGAL CAPITAL DOCTRINE
ILLUSTRATIONS
Transactions 119
SECOND PART. THE REVISED MODEL BUSINESS
CORPORATION ACT—LEVELLING THE LABYRINTH
SUBPART ONE: THE REVISED MODEL ACT—EXPOSITION
Chapter
I. Introduction 177
II. Regulating the Shareholder s Contribution 180
III. Regulating Distributions to Shareholders 182
IV. Abolition of Treasury Shares 190
SUBPART TWO: THE REVISED MODEL ACT
ILLUSTRATIONS
Introduction 193
Transactions 193
THIRD PART. STATE OF PLAY—1990: YESTERDAY AND
TOMORROW AS CONTEMPORARIES
Appendix 198
Index 211
*
ix
TABLE OF CONTENTS
Page
Acknowledgements v
Non Preface vii
INTRODUCTION 1
FIRST PART. LEGAL CAPITAL DOCTRINE
CONSTRUCTING THE LABYRINTH
SUBPART ONE: LEGAL CAPITAL DOCTRINE—EXPOSITION
Chapter I. The Problem—Corporate Creditor and Corporate
Shareholder 5
A. The Creditor s Perspective 5
1. Creditors—General „ 5
2. The Creditor of the Individual Proprietorship or Partnership 7
3. The Creditor of the Corporation 10
B. The Shareholder s Perspective 12
1. Payouts to Shareholders 12
2. Equitable Contribution Among Shareholders—A Separate
Problem 17
C. The Creditor s and Shareholder s Perspectives Combined 17
Chapter II. Legal Capital—Development of the Key Concept 20
A. The Standard of Equity Investment—What Amount of What
Assets Must Shareholders Put Into the Corporate Pot? 21
1. Minimum Pay in Requirements 21
2. The Prototypical Model and Par 22
3. Par , Capital and the Creditor 24
4. The Going Enterprise: A Change in the Model 26
5. Low Par Stock 28
6. No Par Stock 29
7. Legal Capital 30
B. Distributing Corporate Assets to the Shareholders 30
1. Wood v. Dummer^ The Classic Case 30
2. The Key Proposition— Legal Capital as a Measuring Rod 33
3. The Classic Example: High Par 34
4. Legal Capital as a Bench Mark—Some General Observa¬
tions 37 y
5. The Classic Example Modified: Low Par 40
6. The Classic Example Further Modified: No Par Stock.... 41
7. Changes in Capital Structure of the Ongoing Corporation 42
C. Legal Capital as a Concept: Conclusion 43
xi
TABLE OF CONTENTS
Pag*
Chapter III. Regulating the Shareholder s Contribution .... 44
A. The Shareholder s Pay in Obligation 44
1. How Much Assets? 44
2. What Kinds of Assets? 45
a. Future Services 45
b. Promissory Note 45
c. Future Earnings 46
3. Valuation 47
B. Qualifications on the Pay in Obligation 49
1. Transferees of Watered Shares 49
2. Treasury Shares 49
3. The Handley Doctrine 49
C. Enforcing the Pay in Obligation—Creditor as Plaintiff 50
1. Three Theories for Creditor Enforcement of the Obligation
to Pay Par 50
a. The Trust Fund Theory 50
b. The Holding Out or Fraud Theory 51
c. The Statutory Obligation Theory 52
2. Two Other Theories for Creditor Enforcement of the Share¬
holder s Obligation to Pay In 52
a. Stock Subscription 52
b. Balance Sheet and Other Misrepresentation 52
3. Hybrid Theories 53
4. Procedural Pitfalls—The Significance of the Creditor s The¬
ory 53
D. Enforcing the Pay in Obligation—Shareholder as Plaintiff 57
1. The Legal Capital Scheme 57
2. Promoter s Liability 58
3. Equitable Contribution Doctrine 60
4. Disclosure and Securities Regulation 60
E. Enforcing the Pay in Obligation—Corporation as Plaintiff 60
F. The Corporate Practitioner: An Ounce of Prevention 61
Chapter IV. Regulating Distributions to Shareholders 63
A. Insolvency Criteria—Equity Test 63
B. Balance Sheet Based Tests 65
1. Accounting, Accountants and the Law 65
2. Types of Tests 68
a. Tests Employing Stated Capital 68
(i) Stated Capital/Surplus 68
(ii) Stated Capital/Earned Surplus 68
(iii) Stated Capital/Other 68
xii
TABLE OF CONTENTS
Page
B. Balance Sheet Based Tests—Continued
b. Tests Not Employing Stated Capital 68
(i) Net Worth 68
(ii) Adjusted Net Worth 69
C. Stated Capital—Central Concepts..... 69
1. Computation of Stated Capital; Increasing Stated Capital 69
2. Reducing Capital 72
3. Surpluses of Various Hues and Flavors 74
a. Capital Surplus (Paid in Surplus) 74
b. Reduction Surplus 76
c. Appreciation Surplus and Unrealized Gain.. 76
d. Earned Surplus 77
e. Other Surpluses 77
D. Stated Capital Statutes—Types 78
1. Stated Capital/Surplus Statutes 78
2. Stated Capital/Earned Surplus Statutes 79
3. Other Stated Capital Statutes 82
a. Stated Capital/Surplus or Net Profits Statutes 82
b. Stated Capital/Surplus or Current Net Profits Stat¬
utes: Nimble Dividends 82
E. Share Reacquisition by the Issuer— Treasury Shares 84
P. The Class Struggle: Classes of Shares 86
G. Liability for Shareholder Distributions Violating the Applicable
Statute 88
Chapter V. A Preliminary Evaluation op Legal Capital Stat¬
utes 91
Chapter VI. Creditor Protection Outside the Legal Capital
Statutes 98
A. The General Trade Creditor 98
B. The Finance or Institutional Creditor 101
1. The Commercial Creditor 101
2. The Investment Creditor and His Contract—The Corporate
Indenture 103
a. Structure 103
b. Key Covenants 104
(i) Covenant on Secured or Prior Debt 105
(ii) Covenant on Unsecured or Funded Debt 105
(iii) Covenant on Distributions to Shareholders 105
(iv) Covenant on Informing the Trustee 112
c. Contract and Statute Compared 113
xiii
TABLE OF CONTENTS
Page
Chapter VII. End Question 115
SUBPART TWO: LEGAL CAPITAL DOCTRINE
ILLUSTRATIONS I
Transaction
1. Loss H9
2. Small Profit 120
3. Large Profit 121
4. Asset Write up—Appreciation Surplus 122
5. Elimination of Asset Write up 123
6. Stock Issuance for Secret Process 124
7. Write down of Asset 125
8. Stock Dividend 127
9. Stock Split 130
10. Reduction of Stated Capital 131
11. Reduction Surplus as Offset to Deficit 133
12. Paid in Surplus 135
13. Stock Repurchase Agreement 136
14. Purchase of Stock for the Treasury 139
15. Sale of Treasury Shares 140
16. Retirement of Treasury Shares 142
17. Distribution in Kind 144
18. Increase of Stated Capital by Resolution 145
19. Issuance of Preferred Stock 147
20. Present and Future Stock Issuance (No Par Stock; Convertible
Debentures; Subscriptions; Warrants; Options; PIKs and
Poison Pills ) 150
21. Transactions Between Corporation and Shareholders 160
22. Corporation Combination; Purchase Accounting and Pooling of
Interests Accounting 164
23. Dissolution and Liquidation 174
SECOND PART. THE REVISED MODEL BUSINESS
CORPORATION ACT—LEVELLING THE LABYRINTH
SUBPART ONE: THE REVISED MODEL ACT—EXPOSITION
Chapter I. Introduction 177
Chapter II. Regulating the Shareholder s Contribution 180
A. Authorization of Shares 180
B. Par 180
C. Shareholder s Pay in Obligation 180
1. Character of Consideration 180
2. Amount of Consideration 180
3. Equitable Contribution 181 •
4. Share Dividends 181 |
TABLE OF CONTENTS
Page
Chapter III. Regulating Distributions to Shareholders 182
A. Distribution 182
B. Insolvency—Equity Sense 182
C. Adjusted Net Worth Test 182
D. Why Two Tests? 184
E. Valuation 186
F. Miscellaneous Provisions 187
G. Liability for Unlawful Distributions 187
Chapter IV. Abolition of Treasury Shares 190
SUBPART TWO: THE REVISED MODEL ACT
ILLUSTRATIONS
Transactions
1 through 23 ~— 193
THIRD PART. STATE OF PLAY—1990: YESTERDAY AND
TOMORROW AS CONTEMPORARIES
Appendix 198
Index 211
*
XV
|
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| spelling | Manning, Bayless 1923-2011 Verfasser (DE-588)1169665950 aut Legal capital being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries by Bayless Manning with James J. Hanks 3. ed. Westbury, NY Foundation Press 1990 XV, 213 S. txt rdacontent n rdamedia nc rdacarrier University textbook series Gesellschaftsrecht (DE-588)4020646-4 gnd rswk-swf USA (DE-588)4078704-7 gnd rswk-swf USA (DE-588)4078704-7 g Gesellschaftsrecht (DE-588)4020646-4 s DE-604 Hanks, James J. Verfasser (DE-588)173039685 aut HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=004211547&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Manning, Bayless 1923-2011 Hanks, James J. Legal capital being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries Gesellschaftsrecht (DE-588)4020646-4 gnd |
| subject_GND | (DE-588)4020646-4 (DE-588)4078704-7 |
| title | Legal capital being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries |
| title_auth | Legal capital being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries |
| title_exact_search | Legal capital being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries |
| title_full | Legal capital being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries by Bayless Manning with James J. Hanks |
| title_fullStr | Legal capital being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries by Bayless Manning with James J. Hanks |
| title_full_unstemmed | Legal capital being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries by Bayless Manning with James J. Hanks |
| title_short | Legal capital |
| title_sort | legal capital being a concise practical exposition with illustriative examples for corporation lawyers financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital par and no par stock distributions to shareholders equitable contribution by shareholders corporate capital accounts promoters liability and related mysteries |
| title_sub | being a concise practical exposition with illustriative examples for corporation lawyers, financial officers and accountants as well as law and business students with and without accounting backgrounds of the current state of corporation law regulating stated capital, par and no par stock, distributions to shareholders, equitable contribution by shareholders, corporate capital accounts, promoters' liability and related mysteries |
| topic | Gesellschaftsrecht (DE-588)4020646-4 gnd |
| topic_facet | Gesellschaftsrecht USA |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=004211547&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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