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Mike Ashley (former owner) (still alive)

Disco

by Disco
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Hughesy

Hughesy

Posted
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This doesn't really tell us anything about the timing. It's still unclear where the parties are in terms of the definitive deal documents -- stock purchase agreement, etc. Still a good sign, though.

 

People generally don't incorporate in these circumstances until they need to. I've worked in plenty of processes where the binding bid document simply refers in general terms to 'a UK limited company, to be incorporated in due course' because it saves the hassle of setting one up and then closing it all back down again if the other conditions of the sale are not fulfilled.

 

I'd disagree with that slightly. I agree that in a normal bid scenario you would establish the company and acquire within a few days. However I've seen clients establish just to reserve the name and then never use the company again. It's really not that much hassle - it costs £40 to incorporate a company (£120 same day) and not much more to terminate. For large corporates that's less than 15 minutes of legal fees.

Not going to hugely disagree, but you're probably going to use bespoke articles so it might cost a little more.

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Heake

Heake

Posted
Posted

This doesn't really tell us anything about the timing. It's still unclear where the parties are in terms of the definitive deal documents -- stock purchase agreement, etc. Still a good sign, though.

 

People generally don't incorporate in these circumstances until they need to. I've worked in plenty of processes where the binding bid document simply refers in general terms to 'a UK limited company, to be incorporated in due course' because it saves the hassle of setting one up and then closing it all back down again if the other conditions of the sale are not fulfilled.

 

I'd disagree with that slightly. I agree that in a normal bid scenario you would establish the company and acquire within a few days. However I've seen clients establish just to reserve the name and then never use the company again. It's really not that much hassle - it costs £40 to incorporate a company (£120 same day) and not much more to terminate. For large corporates that's less than 15 minutes of legal fees.

 

Would that not be more likely if the wanted to secure the title itself (In that it may have strategic commercial significance) 

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STM

STM

Posted
Posted

This doesn't really tell us anything about the timing. It's still unclear where the parties are in terms of the definitive deal documents -- stock purchase agreement, etc. Still a good sign, though.

 

People generally don't incorporate in these circumstances until they need to. I've worked in plenty of processes where the binding bid document simply refers in general terms to 'a UK limited company, to be incorporated in due course' because it saves the hassle of setting one up and then closing it all back down again if the other conditions of the sale are not fulfilled.

 

I'd disagree with that slightly. I agree that in a normal bid scenario you would establish the company and acquire within a few days. However I've seen clients establish just to reserve the name and then never use the company again. It's really not that much hassle - it costs £40 to incorporate a company (£120 same day) and not much more to terminate. For large corporates that's less than 15 minutes of legal fees.

 

You wouldnt reserve the name of a company if you were a billionaire though? Especially since the name is irrelevant in this case.

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STM

STM

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Ok, so Pinsent Mason was used by Mike Ashley for the purchase of the club in 2007 aye?

 

Would it be then right to assume he may have advised the buyers on which legal firm to use? Sounds plausible to me.

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B-more Mag

B-more Mag

Posted
Posted

This doesn't really tell us anything about the timing. It's still unclear where the parties are in terms of the definitive deal documents -- stock purchase agreement, etc. Still a good sign, though.

 

People generally don't incorporate in these circumstances until they need to. I've worked in plenty of processes where the binding bid document simply refers in general terms to 'a UK limited company, to be incorporated in due course' because it saves the hassle of setting one up and then closing it all back down again if the other conditions of the sale are not fulfilled.

 

I hear you, but I've also been in plenty of transactions were it's done a good bit in advance of closing, while contingencies are outstanding, because it's cheap and gets it marked off on the checklist, and people generally assume the deal's going to go through. Just sayin'. Hopefully, though, it will get done in the next few days.

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Heake

Heake

Posted
Posted

This doesn't really tell us anything about the timing. It's still unclear where the parties are in terms of the definitive deal documents -- stock purchase agreement, etc. Still a good sign, though.

 

People generally don't incorporate in these circumstances until they need to. I've worked in plenty of processes where the binding bid document simply refers in general terms to 'a UK limited company, to be incorporated in due course' because it saves the hassle of setting one up and then closing it all back down again if the other conditions of the sale are not fulfilled.

 

I'd disagree with that slightly. I agree that in a normal bid scenario you would establish the company and acquire within a few days. However I've seen clients establish just to reserve the name and then never use the company again. It's really not that much hassle - it costs £40 to incorporate a company (£120 same day) and not much more to terminate. For large corporates that's less than 15 minutes of legal fees.

 

You wouldnt reserve the name of a company if you were a billionaire though? Especially since the name is irrelevant in this case.

 

 

 

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Hughesy

Hughesy

Posted
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Honestly, I wish they would always do that. Trying to validate a beneficial ownership chain in 24 hours before closing is pretty much impossible.

As a lawyer, KYC can frankly piss off.  Shouldn't be a lawyer's responsibility to spoonfeed that shit.  Shouldn't even touch our desks.

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Matt

Matt

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Honestly, I wish they would always do that. Trying to validate a beneficial ownership chain in 24 hours before closing is pretty much impossible.

As a lawyer, KYC can frankly piss off.  Shouldn't be a lawyer's responsibility to spoonfeed that shit.  Shouldn't even touch our desks.

 

I'm on the banking side, so we don't get much choice.

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Hughesy

Hughesy

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Posted

Honestly, I wish they would always do that. Trying to validate a beneficial ownership chain in 24 hours before closing is pretty much impossible.

As a lawyer, KYC can frankly piss off.  Shouldn't be a lawyer's responsibility to spoonfeed that shit.  Shouldn't even touch our desks.

 

I'm on the banking side, so we don't get much choice.

 

Likewise on the banking side in the legal world, but it's infuriating that it's become our responsibility in the last few years.  It takes a hell of a lot of time (and therefore costs a lot) but we never make any recovery on it.

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