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.
Beginning with Northern Rock and leading up to Barclays' most recent bail out, we have seen many high street banks and building societies rescued by the banks in the previous year or two.
Nonetheless, when a company becomes nationalised, the shareholders that own parts of the company could stand to lose all the money and power that they have put into the company over years of support and financing.
With the Treasury deciding to take over the bank and auction off its elements to the highest bidders, this could be the case with the recent nationalisation of high street building society Bradford and Bingley.
Now, a BBC correspondent has referred to the selling off of B & B's shares as 'legal robbery', as the shareholders were not consulted beforehand and all stand to lose all of their investments; he states that if it was anyone other than the government that was doing this, then it would be illegal.
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.
The pitfalls associated with investing in shares within a company are often not as crystal clear as they may appear; there are many investors that may assume that their shares will go up and down sporadically and all that is required is to wait for the right time to sell; this is not always the case.
According to a Bradford conveyancing solicitor, when unexpected and, most importantly, unpredicted changes occur within the economy, then all bets can be off and 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 question about conveyancing, or are seeking legal advice concerning any other part of the house purchasing process, then a Bradford conveyancing solicitor may be able to make things a little clearer for you; remember, always read the small print before you sign on the dotted line!
Beginning with Northern Rock and leading up to Barclays' most recent bail out, we have seen many high street banks and building societies rescued by the banks in the previous year or two.
Nonetheless, when a company becomes nationalised, the shareholders that own parts of the company could stand to lose all the money and power that they have put into the company over years of support and financing.
With the Treasury deciding to take over the bank and auction off its elements to the highest bidders, this could be the case with the recent nationalisation of high street building society Bradford and Bingley.
Now, a BBC correspondent has referred to the selling off of B & B's shares as 'legal robbery', as the shareholders were not consulted beforehand and all stand to lose all of their investments; he states that if it was anyone other than the government that was doing this, then it would be illegal.
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.
The pitfalls associated with investing in shares within a company are often not as crystal clear as they may appear; there are many investors that may assume that their shares will go up and down sporadically and all that is required is to wait for the right time to sell; this is not always the case.
According to a Bradford conveyancing solicitor, when unexpected and, most importantly, unpredicted changes occur within the economy, then all bets can be off and 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 question about conveyancing, or are seeking legal advice concerning any other part of the house purchasing process, then a Bradford conveyancing solicitor may be able to make things a little clearer for you; remember, always read the small print before you sign on the dotted line!
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Hiring a good Bradford Conveyancing Solicitor can be stressful and costly. If you are looking for Property Solicitors then TakeLegalAdvice.com has a free service to match your requirements with the best law firm.
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