Transformation or Equalisation?: The Transformation Problemm in Light of Capital Transfer

This chapter examines the controls imposed on return of a company’s capital to its members, first by considering the common law general principle that return of capital to shareholders is illegal unless permitted by statute. It then discusses the problem of how to distinguish between a legal distribution of profits and an illegal return of capital; transfer of profits to a capital redemption reserve and use of profits to pay up bonus shares; company’s issuance and redemption of redeemable shares or purchase of its own shares; purchased shares as treasury shares; and how a company may reduce its issued share capital by special resolution. The chapter also looks at capitalisations and employees’ share schemes. It includes analysis of three court cases that are particularly significant to distributions and the maintenance of capital.

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Controlling CO2 emissions for each area in a region: the case of Japan

Carbon Balance and Management ◽

10.1186/s13021-019-0135-7 ◽

2019 ◽

Vol 14 (1) ◽

Author(s):

Tetsuya Tamaki ◽

Wataru Nozawa ◽

Shunsuke Managi

Keyword(s):

Global Warming ◽

Comparative Analysis ◽

Economic Impact ◽

Co2 Emissions ◽

Integrated Assessment ◽

The Other ◽

Output Gap ◽

Emission Target ◽

Emission Quota ◽

Capital Transfer

Abstract Background Global warming is the most serious problem we face today. Each country is expected to ensure international cooperation toward minimizing risk. To evaluate the countermeasures, many researchers have developed integrated assessment models (IAMs). Then, how can each country achieve its emission quota? This study proposes models that analyze the economic impact of global warming in a region based on the results obtained by the global model. By using these suggested models, we perform a comparative analysis on three policy cases: a different regulations case, a unified regulation case, and an output redistribution case. Results We analyzed Japan as one of the case studies and found that more developed areas should implement stricter regulations in all scenarios. In addition, the case of applying different regulations by area (in a region) is not always preferable to using unified regulations in the region. Alternatively, the output gap between the output redistribution case and the different regulations case is much higher than the gap between the unified regulation case and the different regulations case. In all scenarios, the present values of the output of the output redistribution case are also higher than the other cases. Conclusions The different regulations case and the unified regulation case are based on the model without capital transfer between areas, whereas the output redistribution case is based on the model with free capital transfer between areas. Although both models are extreme situations, the regions close to the without capital transfer situation possibly have an incentive to use the different regulations policy, depending on the emission target. The regions close to the situation with free capital transfer would probably prefer unified regulation.

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Importance of Proper Monetary Liquidity: Sustainable Development of the Housing and Stock Markets

Sustainability ◽

10.3390/su12218989 ◽

2020 ◽

Vol 12 (21) ◽

pp. 8989

Author(s):

Ming-Chu Chiang ◽

I-Chun Tsai

Keyword(s):

Stock Markets ◽

Stock Price ◽

Structural Changes ◽

Housing Price ◽

Asset Markets ◽

The United Kingdom ◽

Asymmetrical Effect ◽

Capital Transfer ◽

The Relationship ◽

Coefficient Method

In this paper, we infer that when no excess monetary liquidity exists, people tend to invest available capital in assets associated with a high return or low risk. However, when excess monetary liquidity occurs, capital may successively boost asset markets, and the stock market wealth is thus likely to spill into housing markets, resulting in bubbles in these two markets and therefore in the unsustainable development of both the housing and stock markets. This paper uses relevant data from the United Kingdom from January 1991 to March 2020 to verify whether excess monetary liquidity is a crucial factor determining the relationship between the housing and stock markets. Continuous and structural changes are found to exist between housing price and stock price returns. This paper employs the time-varying coefficient method for estimation and determines that the influence of stock price returns on housing returns is dynamic, and an asymmetrical effect can occur according to whether excess monetary liquidity exists. An excessively loose monetary policy increases asset prices and can thus easily result in a mutual rise in asset markets. By contrast, when excess monetary liquidity does not exist, capital transfer among markets can prevent autocorrelation during excessive market investment and thereby aggravate market imbalance.

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