Hopefully before arriving here you have read and understood the mining part of MYOB. If not, then please go to the Main Menu to start learning about mining in MYOB, otherwise the following explanations will porobably not make much sense to you.

There are several stages to taking over another company.

1. Whenever a company owns 5% or more of another company's shares everyone will be able to see this shareholding in the register to shareholders.

2. If a company gets to own more than 15% of anothers shares this usually signifies a potential predatory takeover and share prices may rise significantly in anticipation of a possible takeover. Note that a purchase attempt of 15% is usually the biggest quantity that can be bought in one transaction.

3. If your company wants to takeover another then the next significant stage is getting more than 30% ownership and when this is achieved then it is considered a hostile takeover and thereafter a time limit of 30 cycles is imposed to complete a full takeover. If you fail to get purchase more than 50% of the shares within the time limit you are not permitted to buy anymore shares in that takeover target for a period of 300 cycles. As soon as you succeed in your takeover then your company will take possession of all that company's assets, summarised below:-

a. Cash whether positive or negative will be merged with your own cash balance.

b. Any tax liabilities of the takeover target will be rolled into your own company accounts

c. Any money set aisde for dividend payments will be released to your companys cash balance.

d. All shareholdings of the company will be transferred to your ownership. If you have more than 5 shares then you will have to select the surplus shares to be immediately sold.

e. All plots will be transferred to your ownership. You will probably need to review these and potentially build mines.

f. All mines will be transferred to your ownership and any commission payment arrangements will remain as they were agreed by the original owner.

g. All recent mine surveys will be available for you to review, in case the original company owner has missed anything.

h. Any contracts will transferred to your ownership.

i. Any stored minerals will be transferred to your ownership.

j. Any technological advantages in mining minerals will be automatically updated.

On the downside your company will also automatically purchase all remaining shares at the final share price. This is likely to be a very high negative cost that may well make your company's cash balance negative and if that is the case some actions will be restricted.

Any comment welcome at s.rush@espsoftware.co.uk