Checklist before buying a Company

Pvt ltd 1324 views 3 replies

Panther

Self Employed

41 Points Joined May 2010

We are in the process of buying a "Limited" company from its current owners. The deal is simple; we pay them X amount and they will relinquish their ownership make us owner.
What all legal precautions should I take to make sure I am protected and there is no trouble in future.
The company currently has many partners but it will be under single ownership after take over.We are buying it as individuals.

Replies (3)

Deepak Maharishi

514 Points Joined April 2010

Dear Friend,

A very basic checklist is hereinbelow:

1	Original Certificate of Incorporation
2	Original Share Certificates
3	Memorandum and Articles of Association
4	Minutes (till date-signed)
5	Statutory Registers
6	Common Seal and Stamps
7	All forms filed with ROC, with challans and relevant annexures

8	Signed Balance Sheets, Notice and Directors Report for 2007
9	Duly Executed Transfer deeds.

10	Resignation letters
11	Annual Disclosures u/s 274(1)(g).

12	Form 8 - in case of any loan and mortgage created.
13	Form 23 - in case filed with Ministry of Corporate Affairs

Regards

Deepak Maharishi

Shashikala Shah

Practising C S

43 Points Joined May 2010

Hi All,

Mr. Deepak has rightly mentioned all the points.

Further to that we can take extra precaution by entering into an MOU making earlier owners liable for all the deeds before the cut off date ( date from which the co is bought) and the buyers responsible for actions after cut off date.