ATo complicate the transactions
BTo protect the interests of all parties involved
CTo favor the acquiring company
DTo discourage such activities
Answer:
B. To protect the interests of all parties involved
Read Explanation:
E-governance is essential for takeovers and mergers because it provides a digital framework that protects the interests of all parties involved. It ensures that transactions are conducted with efficiency, transparency, and accountability, which are critical during complex corporate restructurings.
Ensuring Transparency and Due Diligence: E-governance provides a centralized, secure platform for all necessary documents and data. This allows for comprehensive due diligence, ensuring all parties—buyers, sellers, and regulators—have access to accurate and complete information, preventing the concealment of liabilities or assets. This process reduces risk for investors and protects them from being misled.
Safeguarding Shareholder Interests: In a takeover or merger, e-governance ensures that shareholders' rights are protected. Digital systems facilitate clear communication regarding the transaction, allow shareholders to easily cast their votes on key decisions, and ensure all regulatory disclosures are made promptly and transparently. This reduces the risk of deals being approved without proper shareholder consent.
Streamlining Regulatory Compliance: E-governance helps companies navigate the complex legal and regulatory landscape of mergers and acquisitions. It provides a secure way to file documents with government authorities, such as the Ministry of Corporate Affairs, and ensures compliance with relevant laws and regulations. This helps to prevent legal disputes and costly penalties, which ultimately protects the financial stability of the companies involved.