Consolidated and Nonprofit Entities Research Paper

Consolidated and Nonprofit Entities - Research Paper Example This is entirely contrary to statutory consolidation. To understand the concept further, an article on the same subject has been analyzed and contemplated. The article chosen for analysis is the â€Å"Financing Cayman Statutory Mergers – Issues for Lenders† written by Ashley Davies. This article talks about the â€Å"take private transaction† financing which makes use of the Cayman Island Statutory merger working under Cayman Island Companies Law. This article is potential because it raises many Cayman law issues related to lenders. This article attempts to explore some of the crucial points which parties involved in transaction need to be aware of. According to ( Davis 1) â€Å"The Cayman Islands legislature introduced the statutory merger regime in May 2009, and it has quickly become recognized as a simple and effective way to take private listed companies, with many advantages over previously available option†. In this article, the description is about the merger involving Cayman Islands newly incorporated company with an existing company. Problem Statement; According to Ashley Davis, the statutory merger is supposed to be a complex phenomenon. However the Cayman Island Companies is confident about their merger with its private owned companies. But the author here is skeptical about merger process as he finds many dangerous loop holes in it. This article raises many critical issue related to statutory merger and â€Å"take private transaction† issue is one among them .First critical factor in the article can be seen as the take private transaction in context to statutory merger. This factor has a major role to play when it comes to statutory merger because it relates to the merging of private companies. A "take-private transaction† means that a large private-equity group, or a consortium of private-equity firms, purchases or acquires the stock of a publicly traded corporation Another critical factor raised in the article