One of the important step/ procedure for the businesses to grow inorganicaly is that of the TAKEOVERS. It is simply the taking over of the marjority stake in the sharecapital of the another registered company(target company) or by gaining control over the management of the target company by the acquirer company(the one who wishes to take over, purchase another company). Taking over directly means by intentionaly acquiring the shares of the target company, whereas indirectly in the form of acquiring management of the same. Takeover of a large companies having huge number of general public involved is regulated by SEBI(substantial acquisition of shares and takeover) reg 1997. Public companies with few shareholder is rehulated by sec 395 of companies act 1956. Takeover are hostile and friendly. Usually larger companies get hold of the smaller however even reverse is possible and observed. You as CS has to assure the checklist for duediligence, draft documents for the agreements, obtain approvals within and from regulatory bodies where ever required. You will be the important personnel throughout the execution of the takeover process. -Nancee Batra.
Posted on: Sat, 01 Feb 2014 15:36:35 +0000
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