Archive for category Private Law
Corporate Finance Law – Planning Your Exit As a Private Investor
Posted by admin in Private Law on October 1, 2011
In most cases the greatest financial rewards that private investors see as a result of their investment come not via regular income from the business, but as a lump sum when they end their involvement with the business. The amount of money which is received at this stage can often depend on how well the investor has planned their exit strategy.
Exit strategies
There are a number of exit routes for private investors, each of which has its own advantages and disadvantages. The most common are:
* Public Flotation
* Trade Sale
* Management Buyout
A management buyout is where key individuals and staff members are offered the option of securing finance to purchase all or part of the interest which is held by the businesses owners or investors. This is often an attractive option when coupled with an agreement that the investor will retain a minority shareholding or will continue to receive income from the business for a number of years because control of the business will pass to people who are familiar with the market and who can maximise the future revenues which the investor will draw.
Maximising sale price of the investment Calculating the value of an investor’s shareholding in a business and the price for which he can sell this stake is more complicated than just working out the value of the business as a whole and then pro-rating this. The price which can be achieved is affected by a variety of factors and it is advisable for a private equity investor to take steps to try and control as many of these factors as possible form the outset of their investment. Major factors which will affect the price an investor can achieve for the disposal of his investment include: Read the rest of this entry »
International Institute for the Unification of Private Law
Posted by admin in International Law, Private Law on October 1, 2011
I. Brief Introduction of UNIDROIT
The international Institute for the Unification of Private Law, also known as UNIDROIT, set up in 1926 as an auxiliary organ of the League of Nations; the Institute was, following the demise of the League, re-established in 1940 on the basis of a multilateral agreement, the UNIDROIT Statute. Its seat is in Rome, Italy.
UNIDROIT is an independent intergovernmental organization. Its purpose is to study needs and methods for modernizing, harmonizing, and coordinating private international law and in particular commercial law between states, and to draft international Conventions to address the needs. Moreover, UNIDROIT has to prepare gradually for the adoption by the various states of Uniform rules of private law such as preparing draft of law and conventions with the object of establishing uniform internal law, preparing draft of agreement with a view of facilitating international relations in the field of private law, undertaking studies in comparative private law, taking an interest in project already undertaken in any of these fields by other institution with which it may maintain relations as necessary, organizing conferences and publishing works which the institute considers worthy of wide circulation.
What is the organizational structure of Unidroit like? What is the legislative policy of Unidroit? What are the achievements of Unidroit? Does Unidroit play important role in International law?
II. Membership of UNIDROIT
Unidroit member States are drawn from the five continents and represent a variety of different legal, economic and political systems as well as different cultural backgrounds. In order to be a Unidroit member, states have to accede to the Unidroit Statute. Read the rest of this entry »