Scribd Logo
Upload

Welcome to Scribd!

  • 41 views

    Amal and Mergers

    Uploaded by

    Ankit Gupta
    This document discusses mergers and amalgamations under Indian law. It defines mergers as when one company transfers its assets and liabilities to another company, ceasing to exist, while amalgamations involve two or more companies merging into a new third company, with the original companies ceasing to exist. Reasons for mergers and amalgamations include expansion, cost reduction, increasing efficiencies and market capitalization. Legal issues involve compliance with the Companies Act of 1956, the Income Tax Act, and other laws, which set procedures for arranging mergers and ensuring tax benefits can transfer between companies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Amal and Mergers

    Uploaded by

    Ankit Gupta
    41 views7 pages
    This document discusses mergers and amalgamations under Indian law. It defines mergers as when one company transfers its assets and liabilities to another company, ceasing to exist, while amalgamations involve two or more companies merging into a new third company, with the original companies ceasing to exist. Reasons for mergers and amalgamations include expansion, cost reduction, increasing efficiencies and market capitalization. Legal issues involve compliance with the Companies Act of 1956, the Income Tax Act, and other laws, which set procedures for arranging mergers and ensuring tax benefits can transfer between companies.

    Original Description:

    merger

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses mergers and amalgamations under Indian law. It defines mergers as when one company transfers its assets and liabilities to another company, ceasing to exist, while amalgamations involve two or more companies merging into a new third company, with the original companies ceasing to exist. Reasons for mergers and amalgamations include expansion, cost reduction, increasing efficiencies and market capitalization. Legal issues involve compliance with the Companies Act of 1956, the Income Tax Act, and other laws, which set procedures for arranging mergers and ensuring tax benefits can transfer between companies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    41 views7 pages

    Amal and Mergers

    Uploaded by

    Ankit Gupta
    This document discusses mergers and amalgamations under Indian law. It defines mergers as when one company transfers its assets and liabilities to another company, ceasing to exist, while amalgamations involve two or more companies merging into a new third company, with the original companies ceasing to exist. Reasons for mergers and amalgamations include expansion, cost reduction, increasing efficiencies and market capitalization. Legal issues involve compliance with the Companies Act of 1956, the Income Tax Act, and other laws, which set procedures for arranging mergers and ensuring tax benefits can transfer between companies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 7

    MERGERS & AMALGAMATIONS

    The Meaning

    MergerWhere Assets and Liabilities of one company are transferred to another and the first company loses its existence AmalgamationWhere two or more companies merge into a third new company and the existing cos lose their existence

    The reasons

    Expansion and Diversification Optimum Economic Benefit De-risking Strategy Scaling up of operation for competitive advantages Increase the Market capitalization Cost reduction by reducing overheads Increasing the efficiencies of operations Tax benefits Access foreign markets

    Legal Issues

    The Companies Act. 1956 The Income Tax Act Other Laws The procedure Precedents

    The Companies Act

    Section 391 to 394 -Arrangement -The Scheme -The Petition to the Court -Chairman appointed by Court -Meeting under Courts supervision -Voting by Poll (Postal Ballot!?) -Notice to Central Govt. -No objection from Official liquidator

    The Income tax Act

    Carry forward and set off of accumulated loss and unabsorbed Depreciation: - Sec 72A of the Income Tax Act - Available to Industrial Undertakings

    (Manufacture,Computer, Power, Mining construction Ship,Aircraft, rail)

    - 3/4th Value of Assets to be held for 5 years - Continue the business of transferor Co. for 5 Years

    The Income Tax Act


    Transferor company need not pay any capital gains {Sec 47 (vi)} Amortization cost can continue in the transferee Co. Carry forward of losses/ depreciation in the transferor company Issue of Shares to the shareholders of shares to the transferor Co. does not attract capital gains {Not a transfer SEC 47(vii)}

    You might also like