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New Takeover Code Essay

  • Submitted by: MugdhaJoshi1
  • on April 2, 2014
  • Category: Miscellaneous
  • Length: 6,616 words

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Below is an essay on "New Takeover Code" from Anti Essays, your source for research papers, essays, and term paper examples.

Introduction
Takeover means acquisition by one company of control over another, usually by buying all or a majority of its shares. A transaction or a series of transactions by which a person acquires control over the assets of a company is generally known as takeover of the company. On the other hand an arrangement whereby the assets of two companies vest in one is known as merger.Takeover has been defined as a business transaction whereby an individual or agroup of individuals or a company acquires control over the assets of a company,either directly by becoming owner of those assets or indirectly by obtaining control ofthe management of the company. In the ordinary case, the company taken over issmaller but in a ‘reverse takeover’ a smaller company gains control over the largercompany. This is different from ‘merger’ wherein the shareholding in the combinedenterprise will be spread between the shareholders of the two companies. Normallythe company which wants to takeover the other company acquires the shares of thetarget company either in a single transaction or a series of transactions. In case ofamalgamation under Section 391-394 of the Companies Act, 1956 the amalgamatingas well as amalgamated company have to apply to the High Court(s) for makingorder of amalgamation. However, the regulatory framework for controlling thetakeover activities of a company consists of the Companies Act, 1956, ListingAgreement with Stock Exchanges and SEBI’s Takeover Code.
Takeover Code, as widelyknown in the markets for theSecurities Exchange Board ofIndia (Substantial Acquisitionof Shares and Takeovers) Regulations,1997 (Old Takeover Regulations)has been replaced by a new version.The Securities and Exchange Boardof India (SEBI) vide its order datedSeptember 4, 2009 had constitutedthe Takeover Regulations AdvisoryCommittee (TRAC) to examine andreview the Old Takeover Regulationsand suggest the suitable amendments.The TRAC had submitted its reportto SEBI in July 2010 and most of...

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New Takeover Code. Anti Essays. Retrieved December 11, 2018, from the World Wide Web: http://trenmayamx.com/free-essays/New-Takeover-Code-603253.html