19 January 2012
Golden parachute is defense technique of takeover, where target company makes changes to the terms and conditions of its employees so as that in case any employee's job is terminated, he will get a very huge compensation for loss of office.
By this provision, the offeror company will not be interested to takeover if it want to retrench employees of target company after takeover.
20 January 2012
Thnx alot for answering , But, Is there any other method of offering golden parachute? As u answered regarding offering to employees, same way is any offering made by a shareholder to Promoter is also treated as "offering of golden parachute".
CAclubindia
