Hire a good CA firm for enabling smooth merger process Merger is combining two companies to form a single entity. It is an agreement that unites two existing companies into one new company. It is a corporate strategy to combine with another company and operate as a single legal entity. The Companies that unite for merger are typically equal. Merger involves certain process laid down by the Company law board and government which have to be adhered to by the companies involved in the merger. The best CA firm in Delhi will help you transpire the entire merger process smoothly. The main aim of merger is to gain market share, expand new markets and unite common products. Merger can be of various types – on the basis of integration and on the basis of business activity. Merging of entities provide many benefits in the form of tax benefits, entry in the global market, enhancing of good will and helps to face competition. Experienced Chartered Accountant will chalk out steps to deal with the merger process effectively. 1.
Developing a merger strategy: Developing a good acquisition strategy, helps both the companies get a clear idea of what they will gain from merger and what is the purpose behind the merger – expansion of product lines or gain access to new markets. A good Chartered accountant can help develop strategy after considering various facts and figures.
2. The board meeting shall be convened separately by both the entities for approving the schemes. Date, time and place have to be fixed separately for shareholders meeting and creditors meeting. 3. After board meeting is held both the entities shall publish the notice of proposed scheme to invite any objections or suggestions regarding the same. The notice copy is send to the registrar of the companies and the official liquidator. 4. Before convening the meeting of members and creditors, both the companies shall file a declaration of solvency with the ROC of their state where their registered office is situated. 5. A notice of a meeting of members should be given at least 21 days before the meeting by both transferor and transferee company. The notice of meeting shall include – details of the arrangement of the merger, declaration of solvency and the copy of the scheme. Also any objection if received shall also be taken into account in the meeting. The merger scheme has to be approved by creditors representing 9/10 th in value.