Pvt. Cos. Merger: Confusing Concept
company mh_cet_law intermediate definition_doubtI'm stuck on this. Our textbooks say something vague about Pvt. Cos. merger, but I don't get it. Jab tum log mock tests dete ho, I'm at my shift, so quick help is nice. Can someone pls explain with a simple real-life example? I've read it's like one private company taking over another, but how does it affect shareholders and employees? Do they merge assets, liabilities, or both? I've not seen a clear example, so any help will be much appreciated. MH CET Law, pls guide!
2 Comments
Yeh merger concept really confusing hai, right? So, let's break it down. Private cos can merge in three ways - amalgamation, absorption, or merger of shares. Amalgamation is like two cos joining hands, absorption is one cos taking over another, and share merger is like one cos buying shares of another cos. Still confused? Think of it like a joint family in India - everyone's related, but roles change.
"Pvt. Cos. Merger: Confusing Concept hai, yaar. Accha, let's break it down. Merger is when 2 companies combine to form 1 new entity. It's like 2 friends joining hands to start a new business. One company absorbs the other, or they create a new company altogether. But here's the twist - one company buys the other, and then dissolves. Confusing, right? Merger vs acquisition: what's the difference? In merger, both companies survive. In acquisition, one buys the other and dissolves it.