Consideration and Scrip issue: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Add reference to Scrip dividend.)
 
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1. ''Contract law.''
An issue of bonus shares in proportion to existing shares held.
 
A required element in a contract under English law by which something of value, including a promise, is exchanged for the act or promise of another.
 
Note that other legal systems may differ significantly. 
 
For example in Scots law a unilateral undertaking that is intended to have legal effect, such as a promise, is legally binding (without the need for consideration to pass from the recipient of the promise).
 
 
2.
 
More generally, thoughtfulness and sensitivity towards others.
 
 
3.
 
To act with courtesy and consideration is one of the principles of the ACT's Ethical Code.


A 'one-for-one' scrip issue would mean that one new share was issued for each share held.  This would effectively halve the share price; each shareholder would still have the same share value.


== See also ==
== See also ==
* [[ACT Competency Framework]]
* [[Share split]]
* [[ACT Ethical Code]]
* [[Scrip dividend]]
* [[Consensus in idem]]
* [[Contract]]
* [[Courtesy]]
* [[Quid pro quo]]
* [[Underwriting]]
 
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 21:59, 19 August 2013

An issue of bonus shares in proportion to existing shares held.

A 'one-for-one' scrip issue would mean that one new share was issued for each share held. This would effectively halve the share price; each shareholder would still have the same share value.

See also

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