Corporate Restructuring- Merger & Amalgamation
Corporate Restructuring
What is the difference between takeover / Merger / Amalgamation / Demerger / Arrangement of company?
A takeover is the purchase of one company (the target) by another (the acquirer or bidder). It occurs when one company makes a successful bid to assume control of or acquire another.
In Merger two separate businesses combine into a single new entity and assets and liabilities of one company are transferred to another.
Amalgamation is distinct from a merger because neither company involved survives as a legal entity. Instead, a completely new entity is formed to house the combined assets and liabilities of both companies
A demerger is a restructuring strategy in which one company separates part of its business into a new entity by transferring business and assets. The term demerger can also cover a segment of a larger company being sold or liquidated.
Arrangement means any plan, program, corporate governance document, policy, agreement or other arrangement of the Company or any of its subsidiaries. It include reorganisation of the company's share capital by the consolidation of shares of different classes or by the division of shares into shares of different classes
Is conversion / Takeover of Proprietorship firm into company possible?
Yes, proprietorship can be converted into or taken over by the company.
What are the benefits of conversion of Private company into Limited company?
- Shareholders can transfer their shares with ease and efficiency
- Can raise capital from Public at large
- Greater reliability
- Easy acceptance of deposits and many more
What is reorganization of Share capital?
Reorganization of Share capital means changing the capital structure of a company by combining or dividing shares to create shares of a different value:
Can loans and borrowings be reorganized?
Yes, loans and borrowings can be reorganized via Debt restructuring process.