Comedown or emergence of legal personality of commercial companies in the process of merger and acquisition with comparative approach in English law
Subject Areas : Journal of Investment Knowledge
Seyed Hamidreza
Mirmohammad
1
(PhD Candidate, Financial Management, Financial Law, Faculty of Management & Economy, Sciences & Research Branch, Islamic Azad University, Tehran,)
Mehdi
Montazer
2
(Assistant Professor of Private Law, Faculty of Human Sciences, Islamic Azad University, Damavand Branch, Damavand, Iran.)
Seyed Nasrollah
Ebrahimi
3
(Associate Professor, Faculty of law & political sciences, Tehran University, Tehran, Iran)
Keywords: Acquisitions, legal Personality, Commercial Companies, mergers,
Abstract :
When buyers and sellers exchange physical or electronic goods and services in physical or virtual space, the economic units involved in the production of goods or services may seek mergers and acquisitions that have legal personality and formed pursuant to the commercial act or similar act. Due to the different ownership of the merger and acquisition, in the merger process, on the one hand, the actions of the commercial companies are such that they create a new and unified legal personality or disappeared in another legal personality, on the other hand in the acquisition - unlike the merger – the actions of companies may lead to the purchase or control of shares, capital, and assets to a natural person or legal entity. In this situation, the effect of mergers and acquisitions on the disappearance or survival of legal personality involved in the mergers and acquisitions process becomes relevant. The present study illustrates that unlike the merger process - as a result of which the legal personality disappears or a new legal personality is formed while the previous legal personality disappears, but the legal personality of the companies does not disappear in acquisition process.
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