As the credit crunch forces many companies into administration, the most savvy of the many flailing companies dotted about the country may be aiming to either latch themselves on to a successful company via a merger, or ask the government to bail them out.
Britain has witnessed many high street banks and building societies saved by the government in the previous year or so, starting with Northern Rock and leading up to the most recent bail out of Barclays.
However, when a company becomes nationalised, the shareholders that own parts of the company potentially stand to lose all the money and power that they have invested within the company over the years of their support.
The recent nationalisation of high street building society Bradford and Bingley means that this could be the case for its shareholders, as the Treasury has decided to take over the bank and auction off its elements to anyone who bids the highest.
A BBC correspondent deemed this selling off of B & B's shares as 'legal robbery', seeing as the shareholders weren't consulted or told about the process beforehand and thus stand to lose all of their investments; he claims that anyone other than the government doing this would be considered as acting illegally.
The recession has hit the bank hard, especially in his area of conveyancing, with house prices falling in relation to the economy, yet the public are either too scared to buy or too scared to sell as they do not know what is around the corner.
Many investors may think that their shares will rise and fall sporadically and all that they need to do is wait for the right time to sell, yet this is not always the case; the risks associated with investing in shares within a company are often not as clear as they may seem.
When unexpected and, most importantly, unpredicted changes occur within the economy, then all bets can be off and according to a Bradford conveyancing solicitor, the fact that the government have decided to auction off the company's parts does not entitle the shareholders to any compensation as they should have been aware of the risks when they invested.
If you have a query about conveyancing, or would like legal advice concerning any other part of the house purchasing process, then contact a Bradford conveyancing solicitor today, to see if they can make things a little clearer for you; remember, always read the small print before you sign on the dotted line!
Britain has witnessed many high street banks and building societies saved by the government in the previous year or so, starting with Northern Rock and leading up to the most recent bail out of Barclays.
However, when a company becomes nationalised, the shareholders that own parts of the company potentially stand to lose all the money and power that they have invested within the company over the years of their support.
The recent nationalisation of high street building society Bradford and Bingley means that this could be the case for its shareholders, as the Treasury has decided to take over the bank and auction off its elements to anyone who bids the highest.
A BBC correspondent deemed this selling off of B & B's shares as 'legal robbery', seeing as the shareholders weren't consulted or told about the process beforehand and thus stand to lose all of their investments; he claims that anyone other than the government doing this would be considered as acting illegally.
The recession has hit the bank hard, especially in his area of conveyancing, with house prices falling in relation to the economy, yet the public are either too scared to buy or too scared to sell as they do not know what is around the corner.
Many investors may think that their shares will rise and fall sporadically and all that they need to do is wait for the right time to sell, yet this is not always the case; the risks associated with investing in shares within a company are often not as clear as they may seem.
When unexpected and, most importantly, unpredicted changes occur within the economy, then all bets can be off and according to a Bradford conveyancing solicitor, the fact that the government have decided to auction off the company's parts does not entitle the shareholders to any compensation as they should have been aware of the risks when they invested.
If you have a query about conveyancing, or would like legal advice concerning any other part of the house purchasing process, then contact a Bradford conveyancing solicitor today, to see if they can make things a little clearer for you; remember, always read the small print before you sign on the dotted line!
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