Agreement between 2 companies
9 months ago
One private limited company is going to be separated and almost half of the product will go in another company which will be newly formed. How to make terms and condition to not enter in each other field working area ? Which leagl documents require for this?
A.Dear Client,
From the query it appears that it is related to merger and acquisition of companies means combing two or more companies to form a new company in an expanded form. Both companies will cease to exist in a merger as they operate as another new company. A merger occurs when a company finds an advantage in joining the business with another company, such as an increased shareholder value. An acquisition takes place when one company takeovers the business of another company. In a merger, the merged companies work under a new name. In an acquisition, the acquired company works under the parent company name (acquiring company name). A merger leads to the issue of new shares to the shareholders of both companies. Mergers and acquisitions in India are primarily governed by the following laws- the Companies Act, 2013, Indian Contract Act, 1872, Specific Relief Act, 1963, Income Tax Act, 1961, Competition Act, 2002, Foreign Exchange Management Act, 1999, SEBI Act and Regulation. So, reach out to a Corporate Lawyer who is conversant in M & A matter for information, guidance and steps.
From the query it appears that it is related to merger and acquisition of companies means combing two or more companies to form a new company in an expanded form. Both companies will cease to exist in a merger as they operate as another new company. A merger occurs when a company finds an advantage in joining the business with another company, such as an increased shareholder value. An acquisition takes place when one company takeovers the business of another company. In a merger, the merged companies work under a new name. In an acquisition, the acquired company works under the parent company name (acquiring company name). A merger leads to the issue of new shares to the shareholders of both companies. Mergers and acquisitions in India are primarily governed by the following laws- the Companies Act, 2013, Indian Contract Act, 1872, Specific Relief Act, 1963, Income Tax Act, 1961, Competition Act, 2002, Foreign Exchange Management Act, 1999, SEBI Act and Regulation. So, reach out to a Corporate Lawyer who is conversant in M & A matter for information, guidance and steps.
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A.Dear client,
As per Section 27 of the Contract Act elated to sale of goodwill, one who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the court reasonable, regard being had to the nature of the business.
You can incorporate such terms in the sale deed
As per Section 27 of the Contract Act elated to sale of goodwill, one who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the court reasonable, regard being had to the nature of the business.
You can incorporate such terms in the sale deed
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