»Ê¹ÚÌåÓýapp

Undertaking

»Ê¹ÚÌåÓýapp term ‘undertakingâ€� refers to the business, trade or enterprise of the target company which is transferred as a going concern to be carried on substantially unchanged by the acquiring company. For there to be an undertaking it is implicit that some business must be carried on. »Ê¹ÚÌåÓýapp acquisition of a mere investment held by a trading company is not the acquisition of part of the company’s undertaking (Baytrust Holdings Ltd v IRC [1971] 3 All ER 76). It is doubtful whether the acquisition of assets of a trading company which are insufficient to comprise a viable business could be the acquisition of an undertaking or part undertaking. »Ê¹ÚÌåÓýapp holdings of investments may, however, constitute a business. »Ê¹ÚÌåÓýapp holding of a substantial block of shares in a trading company may constitute a business if the holding is large enough for a parent company/subsidiary company relationship to exist. It is not sufficient that what is transferred constituted a business of the target company. It must continue as a going concern.