When it comes to small business grants, we often hear the words: “government is giving out small business grants in a plenty”. It appears as if obtaining a grant for a new small business is a piece of cake. But the reality is that, there’s no Government department who will be happy to provide you [...]
Archive for the ‘Corporate world’ Category
12 Nov
What is a Takeover
A hostile takeover is a type of corporate takeover which is carried out against the wishes of the board of the target company. This unique type of acquisition does not occur nearly as frequently as friendly takeovers, in which the two companies work together because the takeover is perceived as beneficial. Hostile takeovers can be [...]
12 Nov
What is a Demerger
Demerger are situations in which divisions or subsidiaries of parent companies are split off into their own independent corporations. The process for a demerger can vary slightly, depending on the reasons behind the implementation of the split. Generally, the parent company maintains some degree of financial interest in the newly formed corporation, although that interest [...]
12 Nov
Amalgamation
What is amalgamation? Amalgamation is the joining of two or more companies to form a single new company. Section 219 of the Companies Act, provides that two or more companies, including holding and subsidiary companies, may amalgamate and continue as one company. What are the different types of amalgamation procedures provided for under the Companies [...]
12 Nov
Merger
A merger occurs when two companies combine to form a single company. A merger is very similar to an acquisition or takeover, except that in the case of a merger existing stockholders of both companies involved retain a shared interest in the new corporation. By contrast, in an acquisition one company purchases a bulk of [...]
11 Nov
Corporate frauds
In early 2000, Enron moved away from its core business (electricity and natural gas) to trading in derivatives. It believed that the profits from derivatives could be used to mask the losses of its primary business. Enron star teed incurring massive debt. Though its derivatives related asset yields grew by good numbers, liabilities also piled [...]
