1. Legal issues that should be meditated after, before and during the merger add?
2. Issues on ethical basis should be meditated after, before and during the merger?
3. A plan for implementation the work of managing the potential legal concerns for the merger?
4. A plan for implementation the work of managing the potential ethical concerns for the merger?
5. How the recommended strategy would assist managers establish an ethical environment of work?
6. A plan for how to resolve legal issues?
The subject matter of these definite ethical and legal issues must be contemplated after, before and during a merger. I have been working on this particular subject and I have set up a utilization plan for handling probable ethical and legal concerns for the merger explained how the recommended strategy would assist the managers in establishing a preferable work environment with full of ethics as well as construct strategy on how to resolute ethical and legal issues.
First and foremost, it is the main duty of all the management of the companies to know all the terms and conditions of the Sherman Anti-trust Act of 1890. The Act does not favour the business which behaviour dominates the mentality of cartelism and monopolism (Putman, 2006). The Act signifies the value of employees and their welfare. Now it is the responsibility of the management of the company to ensure the merger does not conclude in the structure of a monopolistic company within its industry (Gilbert, 2005). The management of the company should also ensure that the merger does not conclude a cartel that can actuate market prices as well as end up the consumers. If the merger is found to monopolism or cartelism then the takeover of the company will be blocked by the Government (Putman, 2006).
The managers of the company must look at all the aspects of the company. They must also look at the employee’s contract and their agreements. The main purpose of the contract agreement is to state the contract period. When the tenure of the employment will be over, the number of hours the employee is supposed to work, then the contract period will be responsible to ensure the gross salary of the employee. The compensation will be given to the employee for sick leave according to the contract agreement. All the details of the company’s pension, employment termination and deduction scheme should be clear and transparent. There should also be a neat and clean procedure of employment retirement process and period (Gilbert, 2005).
A mutual approval of shareholder must be signed by the shareholders with regards to the merger. The approval of the shareholders prevents the conflicts after the merger In case these arise from the side of shareholders. Thus the shareholders will give the approval to the consolidation of the company’s assets, stocks, workforce, and financial status and so on (Speakman, 2002).
The newly formed company has some fear and threats so that they need regulatory approval. The newly formed company must enlist their name as a registered company. It also should be a tax compliant as a single entity. The management of the both company’s must be very mutual and transparent and they must look on the various contracts and agreements that both companies are engaged in (Speakman, 2002). The new company will be transferred all the agreements and contractual agreements by the both co0mpanies. Apart from this the debts and liabilities will be transferred to the new company.
A company may not be able to hide and disclose negativity interior its activities; such negativity will surely add the recent loss of vital customers and market shares, recent enhancement of debts and disabilities, recent increase in cost of operations, increase in threats within the company’ business environment and recent increase in competition from competitors(Chalk, 2001). Some business managers do not want to disclose their business negativity within the business so that they may ensure a successful continuity of their business as well as a successful merger (Chalk, 2001).
The merger should always be amicable and friendly, the merger needs to be focused on the benefits of both company’s stakeholders. When it comes regarding the head of the newly formed company, there must be no management arguments. All the hardships need to be managed from the beginning to the end with the legal system. All the information of both the companies, such as consumer information, shareholder information and financial information need to be kept in secret (Sonderholm, 2010). There is no need to disclose these information to any other third party. These are required, when the company is a private company. The termination process needs to be very nicely done by the management panel. The company has to provide all the compensation to their employees for the efforts they did for their company (Sonderholm, 2010).
In terms of successfully handling any legal or lawful concern that takes place before, during and after the merger, the management of both companies should be responsible for having inspection as to whether a merger will go ahead to a business that would be a cartel or a monopoly in the place of market. There should be a proper shape and structure of a new employee contract. An employee contract should be reliable enough to show the mutual consultation between management and employee before the final drafting. Here both minor and major shareholders should be given equal importance and they should be made known to the merger in a timely manner. There should be an option of voting by which a decision will be made that whether a merger should take place or not with respect to the company’s rules and regulations (AKT answer relating to managing parental concerns, 2011). In this subject, Regulatory approval and guidance should take place properly. Both companies should have a good consultation of legal advice before, during and after the merger. If any misunderstanding arises then there should be a system of arbitration for both of the companies (AKT answer relating to managing parental concerns, 2011).
There must be competent people to manage ethical concern in a better way. The competency plays an important role to eradicate the mistake in a company. The competency does not allow any unethical behaviours and conduct (Kaiser, 2002). The managers of both the companies should be very transparent and they should reveal all information regarding their companies like recent increase in the cost of operation, recent loss of market shares and important customers, recent increase in competition and recent increase in alarm and threats within the company’s environment. A SWOT and PESTEL analysis should be conducted to better understand the business environment of both businesses. Determination of the true value of each company is very much important and in this scenario a financial audit is very much helpful and should be conducted in a proper way (Kaiser, 2002).
Mediation is very helpful to solve legal issues, through which both the companies end up their deal neutrally with a concrete agreement. Mediation also helps both parties to take control and decisions on their outcome in disputes with professional manner. Mediation can be useful to solve disputes whereby a neutral holds up any arguments of each company. This decision can be called as ‘award’. The decision made by mediation has two parts, one is binding and the other is non-binding. Binding means that, both parties are accepting the arbitrator’s decision as their final decision (Ogus, 2010). Non-binding means that, either parties or any of them are not satisfied with the decision of arbitrators as final. In case of non-binding, both parties can request for a trial. Legal issues can also be solved through a conference between both parties. The lawyers of both parties should be there in the resolution conference along with a judge. The judge will take action as a resolution officer who will let both parties know the strengths and the weakness of their case. And he will help them to finish their case with a neutral settlement (Ogus, 2010).
Conclusion
The managers of both companies that are involved in merging must ensure that the whole process is conducting in a fair manner and in an ethical way (Brett, 2011). Laws also should be abided by the managers. The outcome of the merger should bring profit to the parties. Any ill feelings that may arise should be sorted out in a friendly way (Brett, 2011).
References
AKT answer relating to managing parental concerns. (2011). Innovait, 4(2), 118-118. doi:10.1093/innovait/inr002
Brett, A. (2011). Fairtrade, fair-trade, fair trade and ethical trade: semantics, politics and development. Food Chain, 1(1), 117-125. doi:10.3362/2046-1887.2011.010
Chalk, P. (2001). Australia and Indonesia: Rebuilding Relations After East Timor. Contemporary Southeast Asia, 23(2), 233-253. Doi: 10.1355/cs23-2c
Gilbert, S. (2005). Ethical, Legal, and Social Issues: Our Children’s Future. Neurotoxicology, 26(4), 521-530. doi:10.1016/j.neuro.2004.12.006
Kaiser, J. (2002). BIOBANKS: Private Biobanks Spark Ethical Concerns. Science, 298(5596), 1160-1160. doi:10.1126/science.298.5596.1160
Ogus, A. (2010). The paradoxes of legal paternalism and how to resolve them*. Legal Studies, 30(1), 61-73. doi:10.1111/j.1748-121x.2009.00146.x
Pestel, N. (2014). Employment effects of green energy policies. IZA World of Labor. doi:10.15185/izawol.76
Putman, W. (2006). Legal research. Clifton Park, NY: Thomson Delmar Learning.
Sonderholm, J. (2010). Ethical Issues Surrounding Intellectual Property Rights. Philosophy Compass, 5(12), 1107-1115. doi:10.1111/j.1747-9991.2010.00358.x
Speakman, L. (2002). The legal and ethical issues. Clinical Risk, 8(6), 241-242. Doi: 10.1258/135626202760391070
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download