Deal Structuring and Agreements in Mergers Defining Corporate Environment

Moulinath Moitra; Akash Chatterjee

Moulinath Moitra Student, Amity Law School, Amity University Kolkata, India.
Akash Chatterjee Student, Department of Law, Amity Law School, Amity University Kolkata, West Bengal, India.Taxation and PerspectiveThe levy and collection of tax has historically been one of the most controversial exercises. Its critics have considered it nothing less than theft sanctioned by law. Its protagonists elevate it to the platform of a great instrument to finance State welfare and achieve the elusive dream of egalitarianism. Like all such controversies, the truth may lie somewhere in between - especially when tax is imposed retrospectively.Taxes have a unique history of evolution alongside the march of civilisation, they have made their indelible imprints on the works and marvels of any particular age be in arts and architecture or business and trade of a particularperiod of time in the history of societies. One early example of taxes being applicable retrospectively can be found in the Indian colonial taxation introduction. Taxation in India also has a history similar to other taxes imposed in other colonies by foreign rulers. The first major tax to be imposed by the British was a tax on income. It was unsurprisingly resented because it was imposed to make India pay for the whole of the extra regiment sent to India, also to recover retrospectively the costs of the regiment for the past six months. The tax was withdrawn for a while, but then it was imposed afresh in 1922 by enacting the Indian Income Tax Act 1922. This law continued in force, with amendments made from time to time although it suffered endless amendments which left it “shapeless and order less”.It is only in the mid-80 s that the principles for valuation of goods became complex after India amended its laws to bring them in line with international principles of valuation and classification. That apart, the growth in the economy as well as of economic activity generally

Abstract

The business being acquired usually merges with another company to create a single legal entity. Stock holders of the target company will get stock, cash, or a mix of both. In the vast majority of mergers, permission of just a majority of the shareholders is sufficient (although certain merger agreements may also need further shareholder approval). In this article, we shall discuss some of those provisions and further an integral part of Mergers which though has not been statutorily defined but yet exists in every big and small decision of companies which is Due Diligence. Due diligence has been a critical part of work culture ever since mergers are in vogue as it helps examine the situation of the target company and its work environment and so its prospect of growth. This may additionally permit the incorporated firm to achieve gains because of the absence of duplication of expenditures on analysis and development, redundant production and various other harmful factors to growth with the exception of helping the affected firm to become additional economical, a merger or acquisition transaction may promote trade rationalisation, to the advantage of the economy as a full.

How to cite this article: Moitra M. Deal Structuring and Agreements in Mergers Defining Corporate Environment. J Adv Res Polit Sci Gov 2022; 6(1): 1-5.

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