Finding the best external legal advisers is a crucial task for corporate counsel and their companies. There are no easy rules to follow and getting it wrong can be disastrous
Ben Frumin explains
Not long ago two companies were set to merge. To take the transaction forward, the companies sought legal advice on a number of matters, including ways to minimize their liabilities, fees and taxes, explains Ashok Nambissan, general counsel for SET India.
On the advice of a law firm, the companies used the aggregate of the authorized capital of both companies when filing the merger, a move that would supposedly alleviate any obligation to pay additional registration charges.
The advice turned out to be wrong. The Registrar of Companies objected and, in order to get the merger through, a large filing fee had to be paid on the aggregated authorized capital.
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