MergerDivision Flashcards
1
Q
- What is a merger?
A
o Combining two or more companies into one new or existing company.
2
Q
- What are the types of mergers?
A
o Merger by acquisition and merger by fusion.
3
Q
- What is the effect of a merger?
A
o Dissolution without liquidation and transfer of assets and liabilities.
4
Q
- What is a division?
A
o Splitting a company’s assets into two or more entities.
5
Q
- What is required for a merger/division plan?
A
o Must include asset evaluation, share exchange rates, and creditor protections.
6
Q
- What happens to creditor claims during a merger or division?
A
o Creditors can oppose and suspend the process until resolution.
7
Q
- How are shareholders compensated in a merger/division?
A
o Through new shares or financial compensation.
8
Q
- What is a merger premium?
A
o Additional value created during a merger.
9
Q
- What is the legal requirement for mergers by public companies?
A
o Approval by general assemblies and registration with the Trade Register.
10
Q
- What happens to contracts during a merger?
A
o Transferred to the new or surviving company.
