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For example, a reduction of share capital using the UK solvency statement procedure only takes effect in law when it is actually registered with Companies House.So any attempt to rely on the reduction before registration would be ineffective.You will also need to consider two other things from a legal perspective.

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Secondly, the transfer may trigger liabilities, such as where the relevant group companies participated in a defined benefit pension scheme.The transaction should be ratified by minutes or resolutions of the participating entities.There are some cases where this approach is not possible.As from that date, customers may have been invoiced by the transferee, employees may have been paid by the transferee, and accounting entries may have been made to reflect the purchase price payable for the assets.

Together, these factors may indicate that the beneficial interest in the relevant assets has passed from a legal point of view.hen companies get desperate to show earnings or reduce losses, sometimes they resort to fraudulent timing differences to show phony profits.

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