The Agreement and Plan of Merger is a legal document that outlines the terms and procedures for converting a corporation into a Maryland Real Estate Investment Trust (REIT). This agreement serves as a binding contract between the merging organizations, providing specific details about the merger process, the rights of shareholders, and the management of the newly formed REIT. It ensures that all legal requirements are met and addresses the impact of the merger on the corporation’s capital stock.
This agreement is composed of several critical sections that detail the merger process, including:
When completing the Agreement and Plan of Merger, follow these general steps:
This Agreement and Plan of Merger is intended for use by corporations looking to convert into a Maryland Real Estate Investment Trust. Entities that typically utilize this form include:
This agreement is pivotal in ensuring compliance with the Maryland General Corporation Law (MGCL) and the Maryland REIT Statute. It legally formalizes the merger process and protects the rights of stakeholders, including shareholders and management. Proper execution of this document can facilitate smoother transitions and prevent legal complications during and after the merger.
When completing the Agreement and Plan of Merger, be mindful to avoid these common pitfalls:
If a contract with a dissolved company exists, the contract will stay legally valid.Dissolving a company will not terminate any lease the company has including those for a real estate property, company vehicles, or other creditors.
On average, roughly 30% of employees are deemed redundant after a merger or acquisition in the same industry. In such situations, most people tend to fixate on what they can't control: decisions about who is let go, promoted, reassigned, or relocated.
A merger agreement (or definitive merger agreement) is the legal contract that is drawn up and signed by both parties when two companies merge. Its terms and conditions can be quite detailed, and it usually spells out several parameters regarding staffing actions to be implemented.
Types of Mergers. The three main types of mergers are horizontal, vertical, and conglomerate. In a horizontal merger, companies at the same stage in the same industry merge to reduce costs, expand product offerings, or reduce competition.
Mergers combine two companies into one surviving company. Consolidations combine several companies into a new, larger organization. For instance, if Company ABC and Company XYC were to consolidate, they might create Company MNO.
A merger is an agreement that unites two existing companies into one new company.Mergers and acquisitions are commonly done to expand a company's reach, expand into new segments, or gain market share. All of these are done to increase shareholder value.
In contract law, agreements are merged when one contract is absorbed into another. The merger of contracts is generally based on the language of the agreement and the intent of the parties.
If the company changes owners in whole or in part, it is still the same company and this will not terminate any contracts. If, instead, the company sells its business (which is an asset of the company that it can sell like a car or a building), then the contracts are transferred as part of that sale.