{"id":1454,"date":"2021-03-31T10:43:59","date_gmt":"2021-03-31T10:43:59","guid":{"rendered":"https:\/\/www.akgvg.com\/blog\/?p=1454"},"modified":"2021-03-31T10:44:42","modified_gmt":"2021-03-31T10:44:42","slug":"corporate-restructuring-an-approach-to-expand-business","status":"publish","type":"post","link":"https:\/\/www.akgvg.com\/blog\/corporate-restructuring-an-approach-to-expand-business\/","title":{"rendered":"Corporate Restructuring an approach to Expand Business"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"760\" src=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2021\/03\/Input-Service-Distributor-Registration.jpg\" alt=\"\" class=\"wp-image-1455\" srcset=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2021\/03\/Input-Service-Distributor-Registration.jpg 1000w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2021\/03\/Input-Service-Distributor-Registration-300x228.jpg 300w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2021\/03\/Input-Service-Distributor-Registration-768x584.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<p>Section 230 to 240 of the Companies Act, 2013 contains provisions of \u2018Compromises, Arrangements, and Amalgamations\u2019, that covers:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Compromise or arrangements,<\/li><li>Mergers and amalgamations,<\/li><li>Demergers,<\/li><li>Corporate Debt Restructuring,<\/li><li>Fast track mergers (process for small companies\/holding subsidiary companies),<\/li><li>Takeovers,<\/li><li>Cross border mergers,<\/li><li>Amalgamation of companies.<\/li><\/ul>\n\n\n\n<p><strong>Corporate Restructuring:<\/strong> Restructuring is an act by which a company can reorganizeits legal, ownership, operational, or other major structural aspects to make it more profitable.<\/p>\n\n\n\n<p>In general, companies may pursue corporate restructuring strategies in response to the drop-down profits, general market or economic forces and trends, changes in ownership, incorporate new technology or enlargethe cash flow of the company.<\/p>\n\n\n\n<p>Restructuring is usually done to maximize the company\u2019s strengths by reducing costs, eliminating inefficiency,and increasing profits.<\/p>\n\n\n\n<p><strong>Types of Corporate Restructuring Strategies<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\"><li><strong>Merger: <\/strong>A merger is a corporate strategy to combine with another company and operate as a single legal entity. The companies agreeing to mergers are mainly equivalent in terms of size and scale of operations.<\/li><\/ol>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Demerger: <\/strong>Demerger is the business strategy wherein a company transfers one or more of its business undertakings toanother company. In other words, when a company splits off its existing business activities into diverse components, with the intent to form a new company that operates on its own or sells or dissolves the unit so separated is called a demerger.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Reverse Merger: <\/strong>When a weaker or smaller company acquires a bigger company, it is a reverse merger. Furthermore, when a parent company merges into the subsidiary or a loss-making company acquires a profit-making company, it is also termed as a reverse merger.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Disinvestment: <\/strong>Selling a stake in a subsidiary, in a company or other investments is known as Disinvestment of Divestment. Divestment is a way to pare loses from raising money, exit a specific industry, or a non-performing asset generally used by Government resorts and Businesses.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Takeover\/Acquisition: <\/strong>A takeover occurs when one company makes a successful bid to assume control of or acquire another. Takeovers can be done by purchasing a majority stake in a target firm.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Slump Sale: <\/strong>Transferring undertakings (one or more) as the outcome of the sale for a lump sum analysis without assigning values to the liabilities and individual assets in sales, is known as slump sale which comes under section 2(42C) of Income-Tax Act 1961.<\/li><\/ul>\n\n\n\n<p><strong>This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. <a href=\"https:\/\/www.akgvg.com\/\">AKGVG &amp; Associates<\/a> does not intend to advertise its services through this.<\/strong><\/p>\n\n\n\n<p>Posted by: CA Neetu Saini<\/p>\n\n\n\n<p><a href=\"https:\/\/www.akgvg.com\/\"><strong>AKGVG &amp; Associates<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 230 to 240 of the Companies Act, 2013 contains provisions of \u2018Compromises, Arrangements, and Amalgamations\u2019, that covers: Compromise or arrangements, Mergers and amalgamations, Demergers, Corporate Debt Restructuring, Fast track mergers (process for small companies\/holding subsidiary companies), Takeovers, Cross border mergers, Amalgamation of companies. Corporate Restructuring: Restructuring is an act by which a company can&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1455,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120],"tags":[323,343,392,463,474,475,469,473,277],"class_list":["post-1454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-secretarial-services","tag-akgvg","tag-akgvg-associates","tag-ca-firm-in-india","tag-cafirm","tag-corporate-restructuring","tag-restructuring-strategies","tag-secretarial-audit","tag-secretarial-service","tag-secretarial-support"],"_links":{"self":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/1454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/comments?post=1454"}],"version-history":[{"count":1,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/1454\/revisions"}],"predecessor-version":[{"id":1456,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/1454\/revisions\/1456"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media\/1455"}],"wp:attachment":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media?parent=1454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/categories?post=1454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/tags?post=1454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}