Corporate and M&A

Impact of China Trade Tensions, Political Uncertainty Affect U.S. M&A, Broader Economic Outlook

A year after record optimism in the wake of sweeping federal tax reform in the United States, respondents to Dykema’s 15th Annual M&A Outlook Survey have tempered expectations for the M&A market, including some notes of pessimism about the broader economy.

Read more: Dealmaker Optimism Remains in 2019, But Drops After Record Level in 2018

With the aim of fulfilling its obligations to various bilateral or multilateral treaties and agreements, on top of easing the enforcement of regulations, the Ministry of Commerce has rescinded three previous ministerial regulations regarding minimum capital requirements for foreign companies and supplanted them with the recently promulgated Ministerial Regulation Re: Minimum Capital and the Period to Bring or Remit the Minimum Capital to Thailand B.E. 2562 (2019).

The new Ministerial Regulation, which took effect on 28th August 2019, outlines both the latest set of requirements as well as the timeframe mandated by the Thai government for foreign companies and investors to bring minimum capital into Thailand. These requirements are not uniform, and the regulation makes distinctions according to company type and the circumstances surrounding them. The provisions of the regulation are summarized accordingly:

Section 2 clarifies that foreign-owned companies that are not required to obtain a foreign business license must have a minimum capital of THB 2 million which must be fully paid up prior to commencing operations.[1] On the other hand, Section 3 requires foreign-owned companies that are mandated to obtain a foreign business license to have a minimum capital of THB 3 million. However, it also declares that if the company’s estimated three-year operational expenses exceed THB 3 million, their minimum requirement should amount to 25% of its three-year operating expenses.[2]

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Senior Partner, Suhas Srinivasiah and Principal Associate, Ajay G Prasad, of Kochhar's Bangalore office have co-authored the India chapter of the ‘Private Mergers & Acquisitions’ published by Practical Law, Thomson Reuters. The paper provides a holistic view of the M&A law in India and recent trends in the private M&A space.

Read the entire article.

As Brexit draws nearer, you may need to give consideration to the arrangements your company has in place in relation to its financial statements.

The Companies Act 2014 (the “2014 Act”) provides that an Irish registered company which is a subsidiary of an undertaking registered within the EEA may avail of an exemption from filing its financial statements with the Companies Registration Office if it satisfies certain criteria, being that its holding company provides an irrevocable guarantee of not only the subsidiary’s liabilities but also all commitments entered into by that subsidiary.

Read more: Brexit, Another No Deal! Important Considerations In Relation To Your Financial Statements

The relationship between corporate legal departments and law firms is rapidly evolving. C-suites expect their corporate legal departments to do more with less and act as “trusted advisors.” In turn, corporate legal departments expect their outside lawyers to provide data-driven, business-integrated solutions rather than just prepare memos, close transactions, and handle cases. And corporate legal departments prefer to work with a smaller number of firms than they have in the past. A growing number of law firms are consolidating in order to operate profitably in an ever-increasing competitive environment. Being a good in-house lawyer is no longer enough — law departments need to work with dynamic outside firms to deliver results. So, how can legal departments identify a trusted advisor?

Read more: How to Boost Business and Employee Morale by Partnering with Your Law Firm