Amalgamations

Economic significance of business amalgamations and absorptions. Mergers and acquisitions are strategic decisions taken for maximisation of a phoners growth by enhancing its mathematical product and marketing operations. They are being used in a wide array of fields such as culture technology, telecommunications, and business process outsourcing as well as in traditional businesses in order to gain strength, expand the customer base, cut competition or enter into a bare-ass market or product segment Definitions The following damage are used in this statement with the meanings specified: victuals of the CompaniesAct, 1956 or any other statutewhich may be applicable to companies. into another company. company is amalgamated. (d) Reserve **means the portion of earnings, pass on or other surplus of an enterprise (whether capital or revenue) appropriated by the management for a general or a specific purpose other than a provision for depreciation or diminution in the value of assets or for a known liability. which satisfies all the following conditions. (i) All the assets and liabilities of the transferor company become, after(prenominal) amalgamation, the assets and liabilities of the transferee company.

(ii) Shareholders holding not less than 90%of the saying value of the equity shares of the transferor company (other than the equity shares already held therein, at present before the amalgamation, by the transferee company or its subsidiaries or their nominees) become equity shareholders of the transferee company by faithfulness of the amalgamation. (iii) The consideration for the amalgamation receivable by those equity shareholders of the transferor company who agree to become equity shareholders of the transferee company is complete by the transferee companywholly by the issue of equity shares in the transferee company, except that cash may be compensable in respect of any fractional shares. (iv) The... If you want to sound a full essay, order it on our website: Orderessay

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