24-03-2012, 11:17 AM
CORPORATE RESTRUCTURING
CS.CHANDRA AGARWAL merger.ppt (Size: 1.59 MB / Downloads: 376)
MERGER
“Combining of two or more commercial organizations into one in order to increase efficiency and sometimes to avoid competition”.
REVERSE MERGER
“As a commercial term, it means when a Healthy Company (in terms of size, capital or listing status)is merging in a Weak Company (in terms of size, or unlisted)”.
REDUCTION OF CAPITAL
“Extinguishing or Reducing the paid-up capital, Securities Premium Account or liability of members with respect to their unpaid calls”
A FEW VARIETY OF MERGER
Unlisted with Listed
Listed with Unlisted
Merger of Subsidiary with Holding Company
Merger with Group Company
Healthy Company with Weak Company
Merger through BIFR
MINIMUM CAPITAL REQUIREMENTS
1. Issued & paid up Equity Capital – Rs 10 crores
(if there is a change in management/control)
OR
Issued & paid up Equity Capital – Rs 3 crores
(If there is no change in management/control)
AND