Question

What is essential to protect the interests of all parties involved in takeovers and mergers?

• A. Legal arbitration
• B. E-governance
• C. Government intervention
• D. Independent audits

Answer 1

Answer:

B. E-governance

• Ensures Transparency: E-governance provides a transparent and auditable digital trail of all financial and administrative activities during a merger or takeover. This helps prevent fraud and ensures that all parties—including shareholders, employees, and suppliers—are aware of the transaction's details.

• Reduces Misuse of Power: By digitizing and automating processes, e-governance minimizes opportunities for those in power to misuse their authority for personal gain. This protects stakeholders from unfair deals and asset misappropriation.

• Facilitates Regulatory Compliance: E-governance systems ensure that the transaction adheres to all relevant legal and regulatory frameworks, such as those set by SEBI. This compliance is crucial for safeguarding the interests of investors and other stakeholders.