Mergers And Acquisitions In Cyprus

The major legislation that regulates mergers and acquisitions in Cyprus is the Companies Law (Cap. 113). In particular, the sections 198-202 contain provisions about mergers, reconstruction and amalgamation of companies, and exchange of shares between two or more companies. Other important legislations are the Control of Concentration Between Enterprises Law (22(I)/ 1999) and the Safeguarding and Protection of Employees Rights in the Event of the Transfer of Undertakings, Businesses or Parts Thereof (104/(I)/2000). The first one promotes fair competition and the second one safeguards employees’ rights in the event of a transfer of undertakings.

Procedure:

First of all, the companies involved in the merger or acquisition must apply to the Court and then schedule a general meeting of the shareholders of both companies. During the meeting, it is determined if it is required to arrange the liabilities between the shareholders and the creditors. It should be pointed out that the company being merged shall be wound up without going into liquidation and its assets must be transferred to the acquiring company.

According to the provisions of section 198, the merger or acquisition proceeds under the condition that the three-quarters of company’s management approve the transaction. Then a scheme is drafted and it is presented to the auditors. Once the scheme is approved, the companies may file the last petition for approval with the Court. Note that the petition should be accompanied by a sworn statement of one director in each company. Afterwards, a copy of the agreement must be submitted to the Registrar of Companies. Finally, the board of directors of each company will draft a resolution that will determine the reorganisation plan and each company will be obliged to follow this particular plan.

It should be pointed out that regarding public companies, the merger procedure will be the same except for minor changes in the merger plan which must contain:

the name;
the form of the registered office of the companies;
details about the transfer of shares and the amount of money;
information about the allocation of shares;
the exact date when the new shareholders will have the right to profits;

Advantages:

From a tax point of view, the primary benefit of mergers and acquisitions is that profits derived by the dividends are exempt from the corporate tax. Moreover, mergers and acquisitions are not subject to VAT in Cyprus. Another considerable advantage is that profits generated from the transfer of immovable properties during the merger or acquisition are exempt from the capital gain taxation. In addition, regarding the transfer of immovable properties is not required to pay the transfer fee.

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Education Loan What You Need To Know

The strength of the United States is not the gold at Fort Knox or the weapons of mass destruction that we have, but the sum total of the education and the character of our people – Claiborne Pell

Education loan is perhaps the most noble loans of all considering that the loan is going to create and grow a student into a responsible future citizen who can contribute to the society in a big way.

American college graduates have earned $1million more than high school graduates during their entire career. This simple statistic is enough to underline the significance of education. What one must not forget, in the brouhaha of course, is that college education is quite an investment in ones future even after considering the huge expenses involved.

Where and How of Education Loan in America
The Federal Government has various student aid and loan programs, to help pay for both undergraduate and graduate education, which it helps get at low rate of interests. Here are some of them.
1.Federal Perkins Loan: This is a low interest loan (5%) and the school is the lender to which you payback. Maximum amount you can draw as an undergraduate is $4000 per year and $6000 per graduate student per year. The total amounts in each case being $20,000 and $40,000 respectively. Barring late charges there are no other charges.
2.William D. Ford Federal Direct Loan Program: An FSA program for after high school students where Department of Education is the lender. You have 2 programs, Stafford- for students and PLUS- parents. PLUS loans offered through FFEL have banks and private lenders to provide.
3.Consolidation loans: Direct loans can be consolidated for reduced and easy monthly repayment through this loan.
4.All private banks: Banks have countless schemes which are more or less similar to Federal schemes.

How Much Loan Should I Borrow
Here students and parents should sit and plan the amount to be borrowed. You can calculate loan amount in two ways. One: using an online calculator; the other way is compiling it yourself. Compiling the loan amount is not difficult with certain amount of homework. Some tips here.
1.Decide on the course and college. Public colleges charge about 1/4th of private colleges in tuition fees for 4 years degree and half of it for 2 years degree.
2.There is additional Out-of-District State Charges in case of 4 year public colleges which run into about $7000.
3.There are sundry expenses including board, books etc which run into $10,000 in both the cases.

Once you are through with calculation, visit the lender or its website for information on documentation and application.

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