Corporate Restructuring
Is it true that Restructuring implies layoffs?
Usually, when a business is restructured, some employees are laidoff. This is because restructurings involve downsizing, which includes closing certain groups, merging others, and generally aiming to reduce expenses and increase efficiency.
What are the different types of Corporate Restructuring?
There are different types of Corporate Restructuring which includes financial restructuring, operational restructuring, organizational restructuring and strategic restructuring.
What are the legal requirements for Corporate Restructuring?
Several laws control the operation of mergers, acquisitions, and downsizing of business, as these are crucial to the development and expansion of the business. These activities are governed by several statutes, regulations, rules, orders, and notifications, and they are implemented by several sectoral regulators, which include the Central Government, RBI, SEBI, CCI, RoC, etc.
Can a company restructure more than once?
A company can restructure as many times as necessary without violating any rules and regulations. A business can make changes in its operations whenever it thinks necessary to decrease expenses and increase efficiency. However, restructuring is a difficult process that needs planning and execution; as such, it cannot be carried out carelessly or frequently.
What are the various reasons for Corporate Restructuring?
There are several reasons for Corporate Restructuring which includes lack of profits, cash requirements, long term growth and improve financial performance of the company.