Role Of Shareholders Agreements In Structuring Mergers And Acquisition Deals

Authored by: Niyati Dharmendra Shah, B.B.A.LL.B , United World School of Law, Karnavati University

Abstract

Within the volatile business environment, where the purpose of the agreement for shareholders (SHA) in the field of mergers and acquisitions (M&A) is quite considerable. When corporations go through the order of consolidation, SHAs form the backbone of the transactions, harmonize the incentives of stakeholders, minimize the risk and create a structured framework for management, decision-making and dispute. This dissertation examines the multilateral, formal and theoretical definitions of SHA on M&A. It diverts relatively deeper beyond the normal framework, as these agreements protect shares of shareholders from and after merger, facilitate smoother transactions and deal with submitted observance and regulatory questions.

The contribution uses various examples of real-life to prove how Shas can support or prevent the success or failure of mergers and acquisitions and offers information about proven procedures, possible disadvantages and the properties of such agreements in modern corporate law. In addition to stretching legal discourse, this research further concludes a gap between theory and practice by showing that SHA is not only intended to eliminate the conflict of interest but also causes long-term resistance of the combined entity. Therefore, it is also possible to consider SBA a tool that is in connection with management and management and compliance with regulations and strategic trade in a modern ecosystem of business transactions.

Keywords: Mergers and Acquisitions (M&A), Corporate Governance, Pre-Emptive Rights, Tag-

Along and Drag-Along Rights, Anti-Dilution Clauses,

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