NON COMPETE FEE
This query is : Resolved
27 October 2010
WHAT IS A NON COMPETE FEE??
27 October 2010
AND IS IT A PROFESSIONAL FEE? PLS SOLVE MY QUERIES SIR
27 October 2010
Non-compete fee is paid to selling promoters, so that they do not re-enter the business and pose competition to the acquired company.
http://www.thehindubusinessline.com/iw/2010/08/22/stories/2010082251021200.htm
Please read the article from above link.
http://www.thehindubusinessline.com/iw/2010/08/22/stories/2010082251021200.htm
Please read the article from above link.
Message likes :
1 times
27 October 2010
thank u sir. so it is not a professional fees right?
27 October 2010
yes. It is not a professional fees.
Message likes :
1 times
27 October 2010
Thanks a lot sir
27 October 2010
Most companies when they take over a business or buy out a company pay a non-compete fee to the seller so that the seller waives off the right to continue in similar business.
The issue is becoming contentious due to the high non-compete fees being paid to the seller, with the Vedanta group being a recent example.
The Vedanta group plans to acquire 51-60 per cent of Cairn India for $8.5-9.6 billion in an all-cash deal. As a part of the deal, the promoters will get a non-compete fee of about Rs 6,000 crore. The non-promoter shareholders will not receive non-compete fee.
The new takeover guidelines by the market regulator Sebi propose to abolish the non-compete fees. At present, Sebi allows the non-compete fees to go up to 25 per cent of the offer price.
The issue is becoming contentious due to the high non-compete fees being paid to the seller, with the Vedanta group being a recent example.
The Vedanta group plans to acquire 51-60 per cent of Cairn India for $8.5-9.6 billion in an all-cash deal. As a part of the deal, the promoters will get a non-compete fee of about Rs 6,000 crore. The non-promoter shareholders will not receive non-compete fee.
The new takeover guidelines by the market regulator Sebi propose to abolish the non-compete fees. At present, Sebi allows the non-compete fees to go up to 25 per cent of the offer price.
27 October 2010
again thanks a lot sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Value of property in capital gain
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
