A newly set up company expected to commence operations after six months wishes to acquire an existing profitable business in the same segment. Resources is not a constraint. Agreement in principle has been reached with the partners of the firm. I am not sure but the assets of the firm will have to be revalued and the firm may end up paying capital gains tax. The capital base of the company may go up substantially and the debt may also go up as per the agreement as no immediate cash transfer is expected.
2006-11-25 12:08:15 · 4 answers · asked by banda 1 in Business & Finance ➔ Corporations
As you propose to take over a partnership business, you may choose to take over the assets on the book value only and not necessarily on revaluation basis. If you are shares to the partners or debt to the partners, it has to be taxed at their level depending on the valuation.As suggested by another member you require a services of tax practitioner or m and A expert.
2006-11-26 03:40:25 · answer #1 · answered by cvrk3 4 · 0⤊ 0⤋
Your question has a more elaborate and detailed process as answer. Though a short effort is being made here to explain.
Both the companies should frame a memorandum of understanding clearly specifying the process of merger / acquisition. A company can be acquired by purchasing its shares. But this should be with the permission of transferor ( the company to be acquired ) company's shareholders. These shareholders are allotted shares of equal less or more value in transferee company. Dissenting shareholders are paid cash.
The process is initiated by calling General Meeting of transferor company's shareholders. Also if creditors interest are being affected their meeting is also called. When both these classes give consent to the scheme of merger, then application is filed in High Court. The court reviews the scheme and passes directions to alter the scheme if any. It also invites objections from any interested parties. You should first see whether it is within the powers of both the companies to carry out this takeover. This power should be mentioned in Memorandum of both companies. After High Court sanctions the scheme, necessary application to Registrar of Companies is made. Once the ROC takes it on record the amalgamation is complete. This is short explanation. You must refer to a good consultant. You will also benefit from reading Sections 392, 393, 394 among others of the Companies Act, 1956.
2006-11-25 18:13:19 · answer #2 · answered by akash_sky 2 · 0⤊ 0⤋
confident, it extremely is a Public limited corporation. there are one among those good variety of Public limited agencies, which you would be able to superb from the itemizing, that there is no could desire to point some. you particularly can come across a great variety of nicely ranked Public limited agencies in Chennai.
2016-12-29 11:59:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Get a lawyer.
2006-11-25 14:09:35 · answer #4 · answered by tornado 2 · 0⤊ 0⤋