About Merger & Acquisition Law in Kiribathgoda, Sri Lanka
Kiribathgoda, a suburb in Sri Lanka, adheres to the overall business and corporate laws of Sri Lanka, that apply to Merger and Acquisition (M&A) transactions. These laws are designed to govern the consolidation of companies or assets, through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.
Why You May Need a Lawyer
Complexity of M&A transactions, the possibility of legal complications, wealth of necessary paperwork, and legal obligations to fulfil make it almost a necessity to employ a lawyer when dealing with mergers and acquisitions. Furthermore, an experienced lawyer can provide advice on structuring the deal, conduct a proper due diligence, negotiate terms on your behalf, help in preparing a disclosure statement and ensure that the transaction complies with the relevant laws.
Local Laws Overview
Sri Lankan M&A laws are a mix of Companies Act No 07 of 2007, the Inland Revenue Act and specific industry regulations. It stipulates that all M&A must be approved by shareholders and certain acquisitions should be publicly announced. The laws also lay out rules for minority shareholder protection, squeeze outs, mandatory bids, and repurchase of shares. Companies also need to adhere to the anti-competitive regulations as per Consumer Affairs Authority Act, No. 09 of 2003.
Frequently Asked Questions
What is due diligence?
Due Diligence is a process of verification, investigation, or audit to confirm the facts of a matter under consideration, such as comprehensive appraisal of a business undertaken by a prospective buyer.
What is a minority shareholder?
A minority shareholder is a shareholder who owns less than 50% of the total shares of a corporation's stock.
What does anti-competitive mean?
Anti-competitive practices are business practices that prevent or reduce competition in a market which might involve predatory pricing, tying, price gouging, refusal to deal, and many others.
What is a tender offer?
A tender offer is a proposal that an investor makes to the shareholders of a publicly traded company to buy the majority of the company's shares to gain control of the company.
What is management acquisition?
A management acquisition is a type of transaction where managers of a company purchase a controlling interest in the company and make it private with the aim of improving operational performance.
Additional Resources
The Board of Investment (BOI) of Sri Lanka, and the Department of Registrar of Companies are useful governmental bodies for someone in need of M&A related legal advice. Additionally, resources like the Colombo Stock Exchange and the Securities and Exchange Commission of Sri Lanka provide helpful information on public companies and securities regulations.
Next Steps
If you need legal assistance with M&A in Kiribathgoda, you should first identify a reputed local law firm specializing in corporate law. Ensure that the lawyer you select has experience specifically in M&A transactions. A good resource to start your lawyer search could be the Sri Lanka Bar Association's online database.
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