Agreement Between Sister Companies
This model is suitable for mergers between limited companies (anonymous companies) and/or limited liability companies (limited liability companies). The parent company is believed to own 100% of the two sister companies. The proposal also provides for the possibility of structuring the merger as a rescue merger (consolidation merger; consolidation in the event of remediation), in accordance with Article 6 of the MerA. In this case, a certified review expert (Certified Reviewer) must confirm that the legal requirements are met. A simplified merger (facilitated merger; simplified merger) does not require the development of a merger report, the merger agreement review, or the right of control of shareholders/members, and there is no need to submit the merger agreement for shareholder/member approval. For the effect of the merger, the surviving company must register the merger in the trade register as a trade registry application. The signed merger agreement, the balance sheet of the merger, including the audit report (if any), as well as the decisions of the supreme management or management bodies (i.e. the Board of Directors (SA) or management (SARL) that approve the merger (if the merger treaty is not signed by all members of these bodies) are attached to this request. In the case of a rescue merger, the application must be accompanied by the confirmation of an expert certified under section 6, paragraph 2, of the Council Regulations. In addition, the cancellation of the ceding company must also be registered in the trade register.
Models for these applications and resolutions are also available in the form of MLL-Docs. Affiliates. Alternatively (for example. B, because the eu`s corporate legislation has highlighted a large number of possible corporate governance structures), a more compact and less legal definition may be preferred. In addition, the concept can be extended to “sister companies” and parent companies: it is therefore proposed to conclude this partnership agreement, which contains the terms agreed between the parties. Intercompany agreements are contracts between two or more companies or divisions that are owned by the same parent company. It is a contract for internal transactions of sales or transfers of goods and services between companies. The reason for an intercompany agreement is to address certain factors of the parent company in collaboration with the two divisions of the same company. Companies with multiple divisions can benefit from intercompany agreements because they are able to transfer goods and services to a location in the company that will benefit the most, with no negative tax results. In addition, by separating transfers of goods and services resulting from intercompany agreements resulting from other transactions, they are able to help the company and its activities interpret and analyze inventory and sales information more effectively.
Companies are not able to take advantage of intercompany sales.