A Comparative Essay on Plato’s and Aristotle’s Philosophies on Beauty, Tragedy and Art Essay

The existence of philosophies in life is important and valuable because they are to guide and determine the beliefs of a person. These beliefs are what dictates a person to act as such or to say such things. For all of the Classical and complicated philosophies present in the world and founded by great thinkers and philosophers, having a philosophy is as simple as having a belief and that belief is what constitutes our actions, words and thoughts. A philosophy can even dictate on what kind of school or job person would want to go to. In some instances, there comes a time that shallow or inconsequential perceptions of a personal philosophy arises and though it may seem as thus, it is still important to remember and consider that a personal philosophy is important for a particular person—since it is his or her own beliefs, therefore it is who he or she is or who he or she wants to be regarded as. No one can deny the fact that philosophies have gone through intensive and extensive transformation and progress in the world’s history and it is still transforming and changing in the contemporary times we have now. From the early ages of the Mesopotamian civilization to the Egyptian kingdoms and to the Romans and the Greeks, the branch of knowledge we now famously call philosophy have had great origins and greater people who made it a point to make their way of thinking or personal beliefs known—Socrates, Plato, Aristotle, Machiavelli and Nietzsche are only some of the few famous philosophers with different beliefs and different perceptions but which all aimed at the same thing—that is they wanted to explain how things function, how life is and finally, to point out that there can be a better way of life for everyone concerned. Something as simple and mundane as what is happiness or what is love is a catalyst for great amount and efforts of thinking since it aims to answer specific things in life—that is, human beings, how are we as humans and how we function? It is just that in the end, one thing leads to another and we are finally caught up with far more difficult, challenging and complex things. On the other hand, no matter how complex certain philosophies are and no matter how different the philosophers and their beliefs are, one thing remains the same—the philosophers were excellent people who practiced intellectual art and this intelligence is what lead them to more profound concerns about things which could have been considered as unimportant. Literature and art for example may seem unimportant compared to politics or religion but philosophers also studied and scrutinized them. Thus, it is most probable that both literature and art (although literature can be actually considered as an art itself) were probably tremendously influenced by the early examples of the Greek and Roman arts. Therefore, the literature and the art which we are admiring and studying today are all influenced by the offshoots of the particular philosophies which the likes of Plato and Aristotle believed in—and Plato and Aristotle were only two of the many known philosophers. There are many others who actively advocated certain beliefs or their philosophies concerning life and they did it (such advocacy) not just for the pursuit of intellectual development or personal fame but just because they are in pursuit of something greater for humanity as a whole. The likes of Aristotle and Plato advocated such philosophies since they believed that it aims for better things; as what Ahrensdorf wrote: Philosophy, on the other hand, seems to teach that the pursuit of wisdom through reason alone is the greatest good for a human being, that reason is therefore capable of both understanding the world and of guiding us to happiness, and hence that the world is, at the very least, not opposed to our deepest desires. (p. 151) Thus, though philosophy as a branch of knowledge may be very broad but it also influences many aspects; for example, as what was written before, literature and art (which are also two important branches of knowledge) is undeniably influenced by philosophy as well. In this paper, the philosophies of Plato and Aristotle will be discussed and will focus on their beliefs about beauty, tragedy and art. Though both great philosophers have great connections and are intertwined with each other, and there are even some vague similarities, their views are still astoundingly different and that is what makes it more interesting and intriguing. The Philosophy of Plato Plato was said to be a student of another great philosopher, Socrates who favourite Plato among his students. When Socrates died, Plato was said to be devastated and yet, he being a student of the great Socrates, continued his teacher’s legacy and became a man of philosophy as well. It is quite understandable that much of Plato’s philosophies were offspring of the beliefs of Socrates himself though with many exemptions. Plato was more realistic than his teacher and worldlier. Plato’s ideals concentrated on society and the ethical than that of Socrates who concentrated on the more metaphysical and immaterial things of life. In Plato’s philosophies, the definition and function of beauty, art and tragedy, were exemplified and explained. It is through these three aspects of life that we are able to further understand Plato’s reasoning about his beliefs. Beauty According to Plato, beauty is and will never be linked to the world of arts. In fact, he believes that beauty can never be art and art can never be beautiful. This way of thinking is characterized by his belief that beauty can never exist since if beauty exists then it should correspond to the perfect definition of beauty. For something to be called beautiful it needs to justify such term and label—a thing or a person cannot be beautiful just because someone says it so or it has the attributes of being attractive. It should instead, exemplify the perfect virtue of being a beauty. Moreover, Plato believes in the knowledge that if something beautiful does exist, then that is the only time that people can commonly acknowledge that such a beauty exists. Therefore, what we as humans have right now is not beauty but a pretentious definition or judgement for beauty—according to Plato that is. (Adajian and Hughes, p. 5) Art Most famous for Plato’s argument about art is that on the subject of poetry. Plato argues that art are mere representations and are not real as what an original object is. Art are therefore considered as imitations, illusions and a lie. Art is merely copying things in their original form and aims to portray the truth of the original form but they would always lose to its attempts since there is nothing more truthful than the original form and nothing more false than art. Plato’s view on this is most famous for his â€Å"thrice removed† belief wherein â€Å"artworks present only an appearance of an appearance of what is really real†. In simple terms, there is an idea or â€Å"Form† of a person which that person makes into reality or an original physical object but art copies that physical object and is thus, the most inferior of all. (Adajian) Tragedy Plato’s regard for tragedy is not the same intellectual disgust as what he had for the subject of beauty and art; in fact, he is more hostile with the subject of tragedy as he believes that â€Å"by portraying the greatest human beings as suffering beings, tragedy teaches that the world is fundamentally hostile to our aspirations for happiness† (Ahrensdorf, p. 156). Plato, together with the dialogue with his teacher, Socrates (or most likely, inspired by the beliefs of his teacher) further explains why tragedy is not a correct and erring concept. This due to the belief that tragedy deceives people from the truth and unlike art where imitates or mimics a true â€Å"Form†, tragedy actually changes how we perceive true Form and eventually alters how we perceive things. For example, Homer and other tragic poets does not only creates lie with their â€Å"soft heroes† they (meaning the tragedies) also portray mistaken ideals about the Greek gods and how people should act regarding their own personal tragedies. Because of these tragedies, people desire terror and misery and when tragic things do happen in reality, a person’s initial and natural reaction would be either in terror or in misery. Moreover, Plato further explains that because of these tragedies, â€Å"human beings unreasonably [become] soft and cowardly by filling them with fear† (Ahrensdorf, p. 158). It can be even said that Plato is disgusted with the existence of tragedy since it fills people with dread about the idea of death and death is something evil. Thus, because of how the tragic heroes are portrayed, the audience or people who watch such tragedies are mistakenly believe that death is something to be feared; in conclusion, it makes people cower and weaklings. The Philosophy of Aristotle Ironically, another great philosopher from Greece is Aristotle who was a student of Plato and who had another great person for a student—Alexander the Great. If Socrates inspired and influenced Plato, it can be the same for Aristotle who was inspired and influence by Plato. If Plato was more concerned with the ethical, Aristotle was more concerned with the scientific and made famous terms which are known today such as the label for â€Å"matter†. More than being a philosopher, he was equally a scientist as well and his philosophies and beliefs would in some point, turn and allude to science. Though he was a student of Plato and was influenced by him, his beliefs were far different than that of his teacher. For example, on the concepts of beauty, art and tragedy, he had different ideas compared to Plato. Beauty While Plato believed in the inexistence of beauty as long as something actually perfectly beautiful exists, Aristotle believed otherwise. According to Aristotle, beauty exists depending on the things surrounding that object or person. Something beautiful exists because it meets certain conditions of being classified as such and usually, these conditions entirely depend on the things within the vicinity of that object. Moreover, he defined any object as beautiful if it is clearly and accurately beautiful. Thus, if Plato believed in perfect beauty, Aristotle believed in measured beauty. This is not that surprising since he was a scientist and believed in more logical and reasonable conclusions than that of mere thoughtful imagination; as what Gaut and Lopes wrote, Aristotle explained in many of his writings like Metaphysics and Rhetoric various allusions and explanation on beauty and how it is measurable and definable: This passage appears to assume a definition of beauty in terms of size and proportion. So beauty is a real property of things. Aristotle says much the same thing in De Motu Animalum, when distinguishing what is beautiful from what is merely perceived as desirable. Aristotle’s beauty is real but equivocal. Its meaning derives from the nature of the beautiful thing in question. Aristotle urges his readers to see the beauty of even repellent animals. All living things boast a design suited to the purpose of their sustenance and reproduction, and that is what beauty comes to. (pp. 25 – 26) Art Plato is not wholly rooting for the subject of art since it is supposedly an imitation and a lie and it can be concluded that Aristotle shares that same belief. Aristotle defines art as something of a â€Å"realization†, a concept which is used to materialize an original and genuine thought. For example, if something is good, and an art is created to depict the concept of goodness then that particular piece of art is a realization. This can be the same as Plato’s philosophy as of art as an imitation of an idea but Aristotle argues that, â€Å"Art however is not limited to mere copying. It idealizes nature and completes its deficiencies: it seeks to grasp the universal type in the individual phenomenon†. (The Internet Encyclopaedia of Philosophy) Tragedy As opposed to Plato’s definition and concept of tragedy wherein the poets are the ones who creates the tragedy, Aristotle has very different view regarding the concept of tragedy wherein tragedy is based on the hero’s very own nature. Based on the Aristotelian beliefs of tragedy, the hero is wholly good and almost perfect. He is strong, virtuous and good. The gods favour him because he is the hero but if in the end, it is discovered that he has a flaw, and then he becomes a tragic hero. But there is a critical point on why this is the case. Tragic heroes and their pathetic demise exists for one thing and that is to â€Å"purge† the audience of the feeling of fear and sorrow: â€Å"tragedy, in depicting passionate and critical situations, takes the observer outside the selfish and individual standpoint, and views them in connection with the general lot of human being† (The Internet Encyclopaedia of Philosophy).

Continuing Nursing Education Essay

Programming of a professional course in nursing is joint responsibility of the director of continuing nursing education & the Dean of school of nursing. Formal channels of communication make the optimal use of the nursing faculty to explore the needs of continuing nursing education. Faculty involvement & provision of advisory committee is highly desirable. To assess the effectiveness of the programme. To what extent pre-set goals have been achieved. To assess the applicability of training in the field. For quality control or qualitative improvement. Procedure for evaluation: Pre-test & post-test. Attitude tests. Observation of skills. Questionnaire. Audio or video tapes. National Literacy Mission (1988): To impart functional literacy to non-literates of 15-35 yrs of age group. Program of action on NPE is given by the Ministry of Human Resource Development; Government of India . According to NPE, Adult Education can be successfully implemented by involving continuing education. The Janshikshan Sansthan is established for clusters of villages with the facilities of library, reading rooms, charcha mandal, community TV set & radio to encourage sub serving the objectives of education. However, continuing education goes beyond post literacy therefore still it is one of the important objectives to be achieved. In-service education is a planned instructional or training program provided by an employing agency in employment setting and is designed to increase competence in a specific area. COMPONENTS : –  Orientation skill training programme. Continuing education programme. Leadership training. Management skills development. Staff development programme. The Journal of Continuing Education in Nursing (JCEN). Continuing Education & self-assessment of knowledge of nurse leaders :- Andreja Kvas , M.Sc , B.Sc , RN. (DOI:- June 10, 2013; 10.3928/00220124). Neeraja K.P, Textbook of Nursing Education (2003): New Delhi: Jaypee Brothers Medical Publishers. Abbatt FB, MEJIA A, Continuing Education of Health Workers, A Workshop Manual, (Geneva) World Health Organization. Satija BR, Trends in Education(2003), New Delhi, Anmol Publishers. Continuing education of health workers includes the experiences after initial training which help health care personnel to maintain and improve existing, and acquire new competencies relevant to the performance of their responsibilities. Appropriate continuing education should reflect community needs in health and lead to planned improvements in the health of the community†. Unified Approach Relationships with other systems Comprehensiveness Accessibility for woman health workers Integration with the management process Analysis of needs as a basis for learning continuity Internally coordinated Relevance in planning Credibility and economic Appropriateness in implementation Safe and effective nursing care. Meet the need of the population. Update  the knowledge. Career advancement. Acquire specialized skills of personnel and meet technologic adjuncts. Prepare in administrative and leadership positions. Shape their own destiny. To meet the health needs and public expectations. To develop the practicing abilities of the nurse. Recruitment function. Recognize gaps in their knowledge. To improve the communication between the participants, faculty, community, and health sector. To test the participants ability to do formal academic study. To shape or support university educational policies and practices. To ensure the quality of education. To grant budget for extension studies. To maintain academic standards. To meet educational requirements. Nurse`s philosophy of life, nursing and education, belief, etc. will influence the philosophy of continuing nursing education. It focuses on individual learner. The thoughtful teacher recognizes that one`s philosophy of education is always an emerging one, rather than a static one. Learning must be a continuous process throughout the lifespan, not limited to formal courses of study. Nursing is based on knowledge of the physical and psychological functioning of man within his environment, expanding the knowledge related to man and his dynamic, proliferating fields of operation is of concern. Learner Teacher/ Educator Guide and counselor to the learner. An arranger and organizer of learning experiences. Motivator and an encourager of students. Evaluator of programmes. Involving resources experts for teaching the students. Providing instructional materials. Select and evaluate materials prepared by others. Administrative role (planning, directing, budgeting and evaluation). Public relations role to change the image of nursing and in recognizing the contributions and potentials of nurses. Master`s degree in his area of nursing expertise or with a doctorate in adult education. Credentials with more publications. Writing and organizing skills. A continuing learner. Clinical expertisedness . Depth of nursing knowledge and skill in its application. Interest in the subject, enthusiasm in teaching. Skill in working with adult learners. Adequate knowledge about teaching skills and methods of teaching. Broad base knowledge. Concern for people. Flexibility. Sensitive to group response. Willing to travel. Detailed advance preparation and organization for teaching. Resourcefulness. Determination. Competencies and other characteristics: Competencies and other characteristics Self-confidence. A sense of humour. Broader outlook. A zest for life. An innate curiosity. Love of Adventure. Desire to search the unknown. Interest in self-development and in others development. Provision for school and nursing faculty involvement in planning and teaching the continuing nursing education courses tends to maintain high  educational standards for the programme. An adequate staff is essential to planning, implementing and evaluating a programme which is based on learning needs and which has an impact on the quality of nursing care provided. Responsibilities of the director of continuing nursing education are: -Determination of learning needs of the nurse population. -Development and implementation of a programme to meet these needs. -Evaluation of results. Staff services are required with sufficient talents and numbers to implement the planned programme: – Advisory. -Secretarial. – Administrative. – Supportive – Assistance with research, publicity, questionnaire, evaluation tools, data analysis, computer programming. An advisory committee has to be appointed, which includes: -Faculty members from a variety of areas of nursing practice. -Directors of hospital nursing services. -Representatives from the state licensing authority, health department and voluntary agencies. -Extended care facilities -Hospital association. -Medical and allied health professionals. -Regional medical programme. Other agencies involved in the delivery of health care in the community. The community may serve as a liaison between the school of nursing and the health community and fulfill a communication and public relations function for the university. Continuing nursing education programme may be decentralized or centralized. Decentralization is characterized by programming within each academic department, faculty involved in consultation and surveys with the public interested in their subject field were most knowledgeable about the needs for continuing nursing education. Centralization is characterized by a separate department or extension division. Financial support is by either university grants or self-supporting. Faculty may be assigned to continuing education as a regular part of the normal teaching load, but for periods they will get extra-remuneration or non-university faculty may hired on a contract basis to teach specific courses. A successful continuing nursing education programme is the result of careful and detailed planning. Aspects of continuing nursing education planning: Broad planning by institution and agencies responsible for continuing nursing education. Specific planning by individuals for their own continuing education. Planning is essential to: -Meet the nursing needs. -Use available resources. -Meet needs at all levels i.e., local, state, regional, national, and international. -Avoid duplication and fragmentation of efforts. -Help keep at a minimum any gaps in meeting the continuing education needs of the nurses.

Foreign Workers in Malaysia

Can’t live with them, can’t live without them. At least that’s what quite a lot of Malaysians I know feel about them. Deputy Human Resources Minister, Senator said that there are 1. 403 million foreigners here holding the Temporary Employment Visit Pass, which accounts for 11. 2% of Malaysia’s total workforce. That’s actually quite a lot of foreigners for a country with a 2. 7% unemployment rate as of last year. But it’s no use denying the fact that we need them. The fact that we still don’t have minimum wage means that there are just too many jobs out there that pay too little (from the perspective of Malaysians) and are considered not worth the trouble by Malaysians. As our cost of living continues to rise against stagnating wages, even fresh graduates earning around RM2,000 will sometimes find it hard to keep things afloat living in Kuala Lumpur, let alone having to survive on a construction worker’s wages. And even now we can see foreign workers in supermarkets and restaurants, jobs that are considered ‘comfortable’ and not ‘heavy’, but more and more locals are turning away from them simply because in the current economic climate the pay is nowhere near good enough. On the one hand it’s a shame that we prefer being unemployed rather than at least earning something, even if it means working a hard job with not very good pay. But on the other hand it’s also understandable why we’d prefer to hold out and keep looking for something better, considering the economic realities that we have to face in our daily lives. The side effect of being dependent on foreign workers is that it puts a strain on a lot of things – public amenities and services especially. They also compete with the poor for low cost accommodation, and the congested living conditions have also contributed to societal and environmental problems. But blaming things on them will not solve anything. The fact of the matter is, these are men and women trying to make an honest living in a foreign country where their presence is not exactly welcomed with open arms. They had to leave their family behind, live in sometimes abominable and unacceptable conditions, and push themselves to the limit to work as many hours as possible in order to send as much money as they can home to their families. Try doing that and see if you won’t find yourself in similar social problems should you be in their exact same shoes. It’s easy to blame the ‘other’ when you’re comfortably on the other side of the fence, but not so easy when you really look and try to empathize with them. Trying to combat these problems will definitely cost money, and if we’re being honest with ourselves, it’s just like dousing a raging fire – it’s unlikely that we can totally put a stop to it. The only way we can avoid these problems is by not having them here or not being too dependent on foreign workforce. Paying the 3D jobs (dirty, dangerous and difficult) better wages to attract locals to do it is a start. A good minimum wage is a start too. Of course companies employing foreign workers will moan that this is not good business, but that is why we vote and have a government – to think about how best to solve this dilemma, because what’s a government here for if not to take care of its people?

General George Marshall's Leadership Essay Example | Topics and Well Written Essays - 2500 words

General George Marshall's Leadership - Essay Example U.S Presidents and Congressional members as well as world leaders admired Marshall because of his abiding sense of fair play, integrity and trustworthiness. General Marshall was the backbone of the ground and air forces, which helped the Allies fight the Axis powers in the most devastating war the world, had witnessed till then. But, surprisingly, Marshall was a man of peace and detested war. Post war when he was the Secretary of State, he forwarded the proposal of rebuilding the economy of Europe and pushed for peace. He is remembered more for the Marshall Plan, which saved Europe and other countries after the war. His character and accomplishments were so continuously extraordinary that he is regularly bracketed in the same category as George Washington. His statesmanship, leadership, selflessness, sense of duty and honor were so exceptional that he continues to be a role model for soldiers as well as civilians even today. Right from the humble soldier to the powerful president, everyone venerates him and his career and life is exemplary. President Harry S. Truman thought of George Marshall as ‘the greatest man he knew’. According to Winston Churchill, "There are few men whose qualities of mind and character have impressed me so deeply as those of General Marshall ... He is a great American, but he is far more than that ... He has always fought victoriously against defeatism, discouragement and disillusion. Succeeding generations must not be allowed to forget his achievements and his example." (Soldier-Statesman)-high praise indeed from a man considered being one of the greatest leaders of the world himself. George Catlett Marshall was born in Uniontown, Pennsylvania on the 31st of December, 1880. He lived with his parents till 1901. He was the youngest of the four children and was a shy and reserved youth. He went to the Virginia Military institute in Lexington, Virginia from September 1897-June 1901 and majored in civil

Strategic plan and control Coursework Example | Topics and Well Written Essays - 2000 words

Strategic plan and control - Coursework Example Apparently, a reflection of the respective lessons entries and the related aspects of the synergized contributors allows for the visualization of the subsequent knowledge gathered throughout the entire course. The first lesson involved an introduction to the entire concept of strategic knowledge. Such was advised by the respective entities that defined the study of strategic planning and its input in the characterization of business. Apparently, the lesson remains best regarded as an introductory to the entire course work. Upon its commencement, an impression on the prospects of strategic planning was considered. I may consider the ideals of the instructors as being vested on the conceptualization of the entire topic. Additional interests were vested on placing it under timeframes, in an effort to ensure its eventual implementation. The knowledge gathered in the first lesson was critical in the shaping of the considered beliefs and the eventual development of a perception regarding the entities of the entire course (Kraten, 2010). At the termination of the first week, I had developed an insight on the entire program and the progressive models under consideration. I must admit that upon th e termination of the program, I had developed interests on the possibilities that stood to be enlisted from the entire course. The contributions annexed to the respective evaluative roles associated to the lesson of the second week played a significant role in the description of strategic planning as perceived by the corporate world. Students were engaged in the various evaluative protocols that may be annexed to a business venture, including the PESTEL model. The model was presented as an ideal approach upon which the evaluation of a venture may be aspired. However, progressive aspects such as the implication that stood to be fetched from the respective models of evaluation remains

Helping Skills in Mental Health Facilitation Case Study

Helping Skills in Mental Health Facilitation - Case Study Example termine her mental state of health as well as help her find a community mental health facilitator in charge of a social support group of people undergoing the same situation as her. The mental health facilitator assists in people sharing their experiences and helping them cope with the problem and their situations better be they social or psychological (Hinkle, 2014). After achieving a bit of control of her life and managing to reduce her depression, the next step is for her to bring in her son with her to the community group and they undergo the support as a family. They will be helped to know how to communicate better with each other, learn out about their needs and want and how to coexist with each other without having to fight all the time. Susan will be taught to not only be a parent but be a friend to her son as well and how they can trust each other since they only have each other. The mental health facilitator is the one to assist them fulfill the plan. Hinkle, S. (January, 2014). â€Å"Population-Based Mental Health Facilitation (MHF): A Grassroots Strategy That Works.† The Professional Counselor Journal. Retrieved from:

Why I Am Attending College Essay Example | Topics and Well Written Essays - 1000 words - 1

Why I Am Attending College - Essay Example Jealousy was my little dark black secret as I watched my friends have the financial support to attend college. My mother is a college educated woman but she did not pressure any of her children to go to college. Sure, she would casually mention going to college, in passing, but when I was a senior in high school she did not encourage me to attend. I guess she thought I would figure it out on my own someday. I remember her saying, â€Å"If you go into the medical field as I did you will never be out of work.† This went in one ear and out the other. I did not take what she said to heart or give it much thought. I felt that filler jobs just ended up on my lap; due to being in the right place at the right time and because I was young and fairly attractive. Now that I am turning 40 and I am a parent; that has changed. My pilgrimage to attain a higher education is to provide a stable life for my son, be a positive role model, and to aspire to find something in life; that can only be found by expanding my education. Having a stable career and not just a job is a very important step in my life. A stable career will enable me to provide a good home and be able to afford a college education for my son. The right stable career is able to point you toward financial freedom and it gives you an opportunity to be in demand in the job marketplace. There are many career choices where hardworking employees will always be in demand; healthcare workers, accountants, and morticians are examples of some of these. My immediate family is in the healthcare field. My mother and father are lab technicians, my sister is a certified nursing assistant, and my brother is an x-ray technician. It seems natural that I would eventually choose this career path.

Evaluative Report Essay Example | Topics and Well Written Essays - 1250 words

Evaluative Report - Essay Example Each section in the report analyzes an important component of the essay written by me in order to establish the importance of academic writing skills in essay writing. TABLE OF CONTENTS 1.0 Introduction 2.0 Essay Structure 2.1 Essay Introduction Analysis 2.2 Essay Body Analysis 2.3 Essay Conclusion Analysis 3.0 Paragraph Structure 4.0 Linking/Connecting Ideas and Information 5.0 Integrating Evidence 6.0 Referencing 7.0 Conclusions/Recommendations 8.0 List of References 1.0 INTRODUCTION Academic writing is an integral part of most of the academic courses pursued in the current world, and the learners need to produce various types of academic papers such as ‘essay’, ‘position statement’, ‘report’, etc. Analyzing or evaluating one’s academic writing skills has great significance in the background of today’s higher education system as such assessments help in the improvement of academic writing process in the future. The possibilities of one’s career development in today’s academic scenario depend mainly on one’s ability to write convincingly according to the requirements of academic writing. In this evaluative report, a detailed analysis of my academic writing skills demonstrated in Assignment 4 (Essay – final copy) is carried out and it builds upon the structure developed in Assignment 3 (Monitoring – report). ... xiii). Broadly, academic writing may refer to any type of writing done in an academic setting. Essay: An essay may be defined as a short academic composition on a specific topic, having components such as introduction, thesis statement, topic sentences, body paragraphs, conclusion, etc. Position Statement: A position statement can be defined as a type academic paper which clarifies or describes a specific arguable point of view. 2.0 ESSAY STRUCTURE An academic essay is an essential element of academic writing, and it assesses a student’s aptitude to present his thoughts and ideas in a structured manner. An effective essay writing process starts with collecting crucial ideas about the topic, and it is essential to present these ideas in an organized way. Thus, an essay should begin with introducing the thesis and the main arguments in an interesting way, and it should be developed logically through the body-paragraphs, ending with a logical conclusion. Therefore, there are thre e main segments in an essay, i.e. the introduction, the body and the conclusion. 2.1 Essay Introduction Analysis In this section, an analysis of the introduction of the ‘Monitoring – Essay’ is carried out. The introductory section of the essay is as follows: The rate of people developing type 2 diabetes is soaring in the western world; Type 2 Diabetes in recent times was typically regarded as a disease of the middle-aged and elderly. While it still is true that this age-group sustain a higher risk, evidence shows that diagnoses of this disease in people aged less than 30 years is accelerating and in fact becoming quite common. Even once active children and

Change management Case Study Example | Topics and Well Written Essays - 1250 words

Change management - Case Study Example verage of the potential purchasers of the customer relationship management software that is used for the professional purpose within the organization. Westerly was responsible for answering the queries from the interested customers. Westerly also explained her research method and the data collection techniques to Robert Lin who is the regional sales director (RSD) for Asia-Pacific. There were two other RSDs who received the negative complaints from the field consultants. Many of the RSDs from Europe and Middle East did not bother to respond to Westerly’s emails as they considered these as irrelevant. However, there were further complaints against her poor performance and she realized that she had failed in undertaking a change management within the organization. After Westerly’s recruitment in Kauflauf, she had to participate in a very short training program of around two months followed by visiting the regional sales directors in the fields and observing their work process. However, she gained an experience regarding the corporate culture followed in various organizations, but the training period was of a very short duration. Westerly was confused with the work process in the relationship driven and solution oriented work process, where technical excellence was considered to be an important factor. She had never worked in an informal atmosphere and the culture was completely unique as well as challenging for her. Many of the employees of Kauflauf considered working in the organization as a source of pride, whereas, very few of them felt that the job seemed frustrating. Westerly had been trained for a very short duration of time and she had to develop a great deal of understanding about the new culture of the organization. Therefore, the change management was a very challenging issue for her and she faced difficulty in understanding the demands of the customers. Hence, her attempt to undertake a change in the sales call pattern failed. Westerly had developed

4 Paragraphs Essay Example for Free

4 Paragraphs Essay -My room is in a mess because I had a party with my best friends last night. I have to clean my room before my mom arrives from work. The underwear is hanging on the lamp, my books are all jammed in the closet, the scarf is beneath the TV and my shoe is under the bed. -We have the best cafeteria, they offer different type of foods, the food menu is so big it consists of Arabian, Indian, American, Mexican and Chinese food. They have a special Indian dish called â€Å"Chicken Tekka Masala† its a dish of roasted chicken chunks in a spicy sauce. Breakfast Burritos is a special Mexican food that contains Eggs, bacon, salsa, sour cream and cheddar cheese wrapped in a flour tortilla, hot sauce is optional. My favorite dish in the cafeteria menu is Shawarma, it’s an Arabian food made with chicken and bread. See more: Distinguish between problem-focused coping and emotion-focused coping Essay -David is a dangerous driver, I hate the way he drives the car, he either drive too slow or too fast. One day we were in the Himalayan mountains, he was behind the steering driving uphill, he was driving so fast we almost fell of the cliff. The way he brakes the car is so scary, it reminds me of how my grandmother drives. Neighbors are so important if they are willing to help you in time of need. My favorite neighbor is Mrs. Shirley , I remember the day when the government cut off our water, she was the first one there to help us, she even offered us to stay at her place. She is so generous and I like the way she hosts me.

Company Law of Directors Duties

Company Law of Directors Duties Chapter 1: Directors’ Duties Formulating a system for holding directors accountable has never been easy. As Roach put it, directors’ duties must be gleaned from â€Å"a confusing and compendious mass of case law and the occasional statutory measure.†[1] Given the vast variations in the types of companies that exist, and the types of directors that exist, a universal approach has not always been easy to apply. Nevertheless, the law sometimes seeks to impose a single standard of conduct on all directors, regardless of the nature and characteristics of the company, and the level of involvement of the director. While recent statutes have started to distinguish between private and public companies, and may vary the duties of a director depending on which type of company is concerned, the vast majority of the case law on directors’ duties makes no such distinction and is of general application. There is therefore a complex body of statutory and case law which attempts to both define the duties tha t a director owes to the company, as well as the level of care that must be exercised when performing such duties.[2] As well as statute and case law, a number of standards and codes of practice have also been formulated which seek to define the nature of the duties owed by directors to companies. The first of these to be considered here is the Cadbury Committee, which was established in 1991 following a number of financial scandals that occurred during the previous decade. It was widely acknowledged that reform was needed in company law to allow shareholders and other stakeholders to hold directors more directly accountable for the consequences of their actions. The Cadbury Committee focused on financial control mechanisms to be used by the Board of Directors, and on auditing procedures, and published its report at the end of 1992.[3] The report focused mainly on larger listed companies and its main conclusion was that a Code of Best Practice should be drawn up and which the Boards of Directors of such companies would be obliged to follow. For smaller companies, it would not be obligatory to comply with the code, but if they chose not to, they would have to publish the reasons why they had chosen not to.[4] Adherence to the Code would be made a listing requirement, which would help ensure compliance among listed companies. The benefits of the Code would be to make corporate governance more open and transparent, would make the equities markets more efficient, would make boards more accountable and also more responsive to the needs of the company, and would allow shareholders to exercise greater control and scrutiny over boards. The report was an early supporter of the importance and need of non-executive directors[5] and recognised that executive and non-executive directors play very important complimentary roles. This area proved to be controversial as many saw the creation of two classes of directors as a threat to the traditional unitary nature of boards. However, the report found that non-executive directors could play a vital role in â€Å"reviewing† the performance of the executive directors, as well as taking measures to avoid and deal with â€Å"potential conflicts of interest†[6]. While the report emphasised the importance of financial auditing of companies, it did not go into detail on what should be disclosed in such audits, nor did it consider the controversial area of auditor liability. These were issues which would later become the subject of heated debate. The Report was also an important element in the growth of shareholder activism in the UK, and it concentrated on the steps that institutional shareholders could take to ensure compliance with the Code. In response to the issues raised in the Report, the Institutional Shareholders Committee[7] published its own paper, â€Å"The Responsibilities of Institutional Shareholders in the UK†[8] which dealt with many of the issues raised in the Cadbury report. The paper stated that â€Å"Because of the size of their shareholdings, institutional investors, as part proprietors of a company, are under a strong obligation to exercise their influence in a responsible manner.† This paper marked a new era in UK shareholder activism and promised to make shareholders more involved in making boards more accountable. The paper went so far as to recommend â€Å"regular, systematic contact at senior executive level to exchange views and information on strategy, performance, Board Membership and quality of management†[9]. Regarding the composition of boards, the paper recommended that institutional investors look carefully at â€Å"the concentration of decision-making power not formally constrained by checks and balances† and â€Å"the appointment of a core of non-executives of appropriate calibre, experience and independence.†[10] Therefore, this new investor oversight was taken for granted in the Cadbury report as another force that would improve the governance of large companies. The Cadbury Report has not been without criticism. Many feared that its recommendations, which put a strong influence on non-executive board members, would lead to the creation of a two-tiered board, a development that was seen as unnecessary and inefficient.[11] The voluntary nature of the Code has also been criticised. As a listing requirement, the Code also drew some criticism on the London Stock exchange which was given the task of enforcing and implementing the Code. Concerns led to the establishment of a follow up report prepared by the Hampel Committee, which re-examined the issues at stake, the criticisms which had been raised, and the conclusions reached in the Cadbury Report. The conclusions of the Hempel Committee were strongly supportive of the Cadbury Report and it was not long before the ‘Combined Code’ was drawn up, and implemented by the London Stock Exchange which listed companies were bound to implement, or give reasons for not doing so. The Combined Code now requires that boards implement a â€Å"sound system of internal control† which must consider all significant risks facing the company, the effect they might have on the company, and the costs and advantages of various means of dealing with such risks. The Code also deals with the terms and conditions on which directors are employed, including their pay packages incentive schemes, and termination payments. When speaking of the duty owed by directors to a company therefore, this includes the legal duties imposed on directors by the case law and statutes dealing with the subject, as well as the soft-law measures implemented in the Combined Code. Such duties may be owed to the company itself, or to shareholders or other stakeholders such as shareholders, employees, creditors, and the general public. That said, it must be remembered that in a legal sense, the duties owed by directors is to the company as a legal person, and not shareholders or other stakeholders. The case of Percival v Wright [1902] 2 Ch 421 established beyond a doubt that the duties of directors is to the company. This case concerned a transaction in which a number of directors purchased shares personally from shareholders at a price of  £2 10s. The directors knew that another purchaser wanted the shares and was willing to pay a substantially higher price. The shareholders sought to have the transaction set aside as a breach of duty to the company. Swinfen-Eady J found that the directors had breached no duty to the company, and that no such duty was owed to the shareholders qua shareholders.[12] The case of Scottish Co-operative Wholesale Society Ltd v Meyer [1959] AC 324 also illustrates the point. In that case, a parent company appointed some of its directors as directors of a subsidiary. These directors pro ceeded to act in the best interests of the parent, but Lord Denning pointed out the directors â€Å"probably thought that ‘as nominees’ of the [parent company] their first duty was to the [parent company]. In this they were wrong.† The duty of directors is always to the company they are acting for, regardless of the external relationships that the company, or they personally, may have with other persons. Currently there are proposals afoot to allow directors to act in the interests of a group of companies, as this is what happens in reality in many cases, especially where the shareholders and directors of the various companies are identical. Without shareholders seeking a profit from a company, it can be argued that a company is a meaningless concept, or a piece of paper without a purpose. The law therefore recognises that in most cases, the interests of the company, will be closely connected to the interests of the members of the company, the interest of both being to make a profit. However, as shown above, the interests of the members are not paramount, and difficulties will always arise in equating the interests of the company with the interests of the members due to the fact that in many situations, the members will have different opinions and conflicting interests which cannot all be met. Section 172 of the Companies Act 2006 also adopts the ‘enlightened’ approach which calls for the interests of the company to be interpreted widely and not only as the maximisation of profits at a cost to all other considerations. Employees are one group whose interests the directors must â€Å"have regard† to un der section 172. This is part of the general duty owed to the company and as such, must be enforced by the company, and not the employees. Many have criticised this provision as meaningless, as employees cannot enforce it, however, given that it is a requirement of the Companies Act, it must be expected that the majority of boards will consider the impact their decisions will have on employees, and such consideration will be minuted. While the provision may not prove capable of persuading callous directors to act other than in the interest of profit maximisation, it will certainly support the efforts of directors who do wish to improve conditions for employees. It also remains to be seen how this provision will be enforced by companies and it may transpire that a strong line of case law will develop which will persuade directors to give genuine consideration to the interests of employees. Another group whose interests must be considered under section 172 is creditors. In Lonrho v Shell Petroleum [1980] 1 WLR 627 Lord Diplock stated, at page 634, that the best interests of the company â€Å"are not exclusively those of its shareholders but may include those of its shareholders.† Since it is the members who appoint directors, it would be tempting for directors to seek to promote only their interests, however, as the court recognised, it is often the case that creditors have put significant money into a company and their interests must be taken into account. Lonrho concerned a company that was solvent at the relevant time. The position regarding an insolvent company arose in The Liquidator of the Property of West Mercia Safetywear Ltd v. Dodd and Another [1988] BCLC 250. In this case the Court of Appeal confirmed that when a company was insolvent, its interests include those of its creditors. In Winkworth v Edward Baron [1987] BCLC 193 Lord Templeman found that th e duty was owed directly to the creditors and in Brady v Brady [1989] 1 AC 755 Nourse LJ stated that where a company was insolvent, or its solvency was at risk, the interests of the company and its creditors were identical. According to Finch therefore, the creditors interests must always be taken into account to a limited extent, but as the company approaches insolvency, the interests of creditors must be given greater weight, until the interests of both groups coincide on insolvency.[13] The full extent of the â€Å"success of the company† as it is termed in section 172 of the 2006 Act includes a duty of directors to have regard to â€Å"(a) the likely consequences of any decision in the long term, (b) the interests of the company’s employees, (c) the need to foster the company’s business relationships with suppliers, customers and others, (d) the impact of the company’s operations on the community and the environment, (e) the desirability of the company maintaining a reputation for high standards of business conduct, and (f) the need to cat fairly as between members of the company.† It can be seen that there has been a steady broadening of the concept of the interests of the company to include more and more interests that a pure profit motive would fail to embrace. In March 2000, the DTI Company Law Review Committee stated that an â€Å"inclusive approach† should be adopted.[14] They pointed out that society’s interest in company law was that it promote â€Å"wealth generation and competitiveness for the benefit of all†, and that this can better be achieved if directors are forced to take into account â€Å"all the relationships on which the company depends.† The approach adopted in the Companies Act 2006 towards the creation of a statutory â€Å"general duty† owed by directors to the company is a progression of this concept with section 170(3) stating that â€Å"The general duties are based on certain common law rules and equitable principles as they apply in relation to directors†¦Ã¢â‚¬  At subsection (4) it states â⠂¬Å" The general duties shall be interpreted and applied in the same way as common law rules or equitable principles†. This is clearly maintaining the case law that has built up over the past centuries as the framework on which the new statutory general duties are based. It remains to be seen what effect the new statutory duties contained in section 172 of the 2006 Act will have on this case law. Therefore, in looking at the duties owed by directors, it is necessary to read both the statutory provisions and the pre-existing case law together. These both make a distinction between the ‘fiduciary’ duties that directors owe the company, and their duty to act with ‘reasonable care, skill and diligence.’ Under section 174 of the 2006 Act a director â€Å"must exercise reasonable care, skill and diligence.† The content of this duty has been long ago established by the courts and in The Marquis of Bute’s Case [1892] 2 Ch 100 the limits of the duty were clearly set out. That case concerned the Cardiff Savings Bank, which allowed by tradition the Marquis of Bute to inherit the presidency of the bank from his father. The Marquis in question became president at the age of six months, and in the following 38 years, he attended only one board meeting. He therefore had no awareness of the business or involvement in it, and the court found that he was not expected to be involved. When financial irregularities by the board were uncovered, the court found that the Marquis was not liable due to his remoteness from the business, despite his formal position on the board. However, it appears as if the courts quickly grew stricter and in Dovey v Cory [1901] AC 477 a director escaped lia bility for malpractice but only because he had relied on information given to him by the chairman and general manager of the company, and his decision to do so was reasonable and not negligent. The extension since the Marquis’ case therefore, was the application of a reasonableness test. The standard was further developed in Re City Equitable Fire Insurance [1925] Ch 407 in which three rules were established. These were that: a director must show the skill and diligence that could be expected from a person with his knowledge and experience; his duties are intermittent, and exercised only at board meetings where he participates in decision making; where reasonable, a director is free to delegate tasks and responsibilities to other employees. These rules were affirmed in Dorchester Finance Co. Ltd v Stebbing [1989] BCLC 498 which stated that they applied equally to executive and non-executive directors. One of the features of the standard set out in Re City Equitable Fire Insurance is the fact that the standard is not that of the professional man, but the reasonable man with the skill and experience that the director in question subjectively possesses. This subjective test is useful for most companies as the more complicated the operation and the more money that is at stake, the more qualified the director is likely to be and the higher the standard. The standard will fall short in cases such as the Marquis of Bute, but this is more to do with the fact that a woefully unsuitable candidate has been appointed to the board, such as a six month old baby. In all but such extreme cases therefore, the subjective case set out in Re City Equitable will be sufficient. The second rule only requires the director to attend meetings and make himself aware of the business of the company â€Å"whenever in the circumstances he is reasonably able to do so.† Again this approach gives the law fl exibility to allow for very different types of director, depending on the nature of the business. So for example, you could have an elderly family member sitting on the board because he knows the history of the business, and he will not be required to pay constant attention to the business, but simply offer his guidance when reasonably practicable. You could also have, as most companies do, full time salaried directors who are paid to spend all of their time and attention on the affairs of the company. As both types of director will be useful in various circumstances, the law allows for both, and requires each of them to be as aware of the dealings of the company as is reasonable in the circumstances. The third rule allows directors to delegate responsibility to others, and it might be feared that this will be used by directors to avoid responsibility. However, when taken together with the other rules of the test, it is apparent that a director cannot delegate all of his responsibilities and disallow all awareness of the dealings of the company. He will still be required to be reasonably aware of what is going on and only to delegate tasks which it is reasonable for him to do so, taking into account the nature of business and the circumstances of the case. However, there are many instances in which these three rules will not protect investors or other stakeholders, for example in the Marquis of Bute case, and there have been calls for some time for an objective standard to be introduced into the law. The DTI Company Law Review Committee, in the 2000 report mentioned above, pointed out that an objective standard has been adopted for the protection of creditors by section 214 of the Insolvency Act 1986[15] and in the case of Re D’Jan of London Ltd [1993] BCC 646 Hoffman LJ found that the objective standard set out in section 214 of the 1986 Act reflected the standard that all directors were bound to meet when upholding their general duty. Therefore, the objective standard first set out in the insolvency context became the general standard owed by directors in all cases, and section 174 of the 2006 Act affirms that both the objective and subjective standards apply. At section 174(2) the 2006 Act states that the standard required is that which may be met by a â€Å"reasonably diligent person with (a) the general knowledge, skill and experience that may reasonably be expected of a person carrying out the functions carried out by the director in relation to the company, and (b) the general knowledge, skill and experience that the director has.† Therefore, as a minimum, the director will be required to demonstrate the care and skill that a reasonable director of a company of that type and standard would be expected to demonstrate. This allows for some flexibility as this minimum standard can still vary depending on the business, so that the director of a small family business will have a lower standard than the director of a FTSE 100 company. At the same time, if a director is chosen because of his particular characteristics, which make him qualified above and beyond what one might expect, he will be held to this higher, subjective standard. This standard, which upholds an objective minimum standard, which may be increased if the director in question is unusually highly qualified, seeks to strike a balance between protecting the interests of the company, and allowing directors to feel relatively at ease with the personal liability they have taken on board. A different approach was adopted in the USA, where the Supreme Court of Delaware, in Smith v Van Gorkom [1985] 488 A.2d 858 found the ten directors of Trans Union Corporation liable in the sum of $23.5 million for agreeing to a takeover without first valuing the shares of the company. While this failure seems fundamental, the sale of the company’s shares was set to take place at a price significantly higher then the quoted price of the shares on the stock exchange, and the takeover would undoubtedly have benefited the company. The massive liability was imposed without any allegation of fraud or breach of fiduciary duty and resulted in a marked unwillingness of q ualified persons taking on the role of non-executive director, at least for a time. It also resulted in a number of states, including Delaware where the decision was made, enacting legislation which allowed companies to exclude or limit the liability of directors for negligent breach of their fiduciary duties. Such a situation has not occurred in English company law, and the standard adopted in section 174 is measured to avoid the need for such a development. The second main area of directors’ duties falls under the heading of fiduciary duties. At its most simple, this covers the requirement that directors act bona fides in respect of the company. The case law that developed however sets out a number of common instances in which directors are in danger of breaching this duty, and the 2006 Act has proceeded to specify these situations explicitly. While it is not set out as such, the duty to act bona fides can be seen as an overriding interest, which cannot be breached, even when authorised by the shareholders in general meeting. For example, in the case of (Re Attorney-General’s Reference (No. 2 of 1982) [1984] 2 ALR 447 the directors of the company were the only shareholders. They took money from the company and the interpretation given was that the directors had taken the money with the authorisation of the shareholders. Nevertheless, the court found that this was breach of the overriding duty to act bona fides. The case of R v Phillipou [1989] Crim LR 559 found the same overriding duty and these cases were upheld by the House of Lords in R v Gomez [1992] 3 WLR 1067. Therefore, it can be said that there is an overriding duty to act in good faith and even if a majority of the shareholders approve of the action, the directors may not breach it, and a minority of shareholders, or creditors, and possibly employees and other stakeholders, would be able to have the action set aside. However, it is also possible for directors to breach one of the explicit fiduciary duties, such as using powers for one purpose to achieve a different purpose, which are not dishonest or mala fide. In such cases, the court can find that the breach of the particular fiduciary duty does not place the directors in breach of their overriding duty of good faith, and a majority of the shareholders can vote to authorise such acts. Section 239 of the Companies Act 2006 allows shareholders to ratify breaches of a fiduciary duty, but subsection (7) states â€Å"This section does not affect any other enactment or rule of law imposing additional requirements for valid ratification or any rule of law as to acts that are incapable of being ratified by the company†. Therefore, the previous case law which was upheld by the House of Lords in Gomez still limits the ability to ratify. In fact, the specific fiduciary duties have been described as â€Å"disabilities† and in Movitex Ltd v Bu lfield and Others [1988] BCLC 104 it was upheld that companies could alter their Memorandum and Articles to amend the nature of any fiduciary duty owed by the directors to the company, subject always to the requirement that nothing purported to allow dishonesty. Movitex concerned the concept of self-dealing, which is ordinarily presumed to be a breach of duty. In this case, the company was able to remove this presumption, so that the director was able to engage in self-dealing, but subject to the requirement that he did in fact act in the best interests of the company. A simple example of this would be if a cheese producing company sought to appoint the owner of a supermarket as a director. Self dealing would disable the director from selling cheese to the supermarket he owned, as it would be self-dealing, and very easy for the director to breach his fiduciary duties to the cheese producing company. However, the company could authorise the director to sell to the supermarket concern ed, on condition that he did not abuse this ability and breach his duty of good faith. An ordinarily disallowed activity would be allowed, but would still be subject to the requirements of good faith. The explicit fiduciary duties of the director set out in the 2006 Act are: the duty to act within powers[16]; the duty to exercise independent judgment[17]; the duty to avoid conflicts of interest[18]; the duty to declare interests in proposed transactions or arrangements[19]; and the duty not to accept benefits from third parties[20]. Section 171 requires that the director â€Å"(a) act in accordance with the company’s constitution, and (b) only exercise powers for the purpose for which they are conferred.† This is an area where the courts have been quite willing to excuse directors if they have used a power for a collateral purpose and a majority of shareholders have been in favour of it. For example, in the cases of Punt v Symonds Co [1903] 2 Ch 506 and Piercy v S Mills Co [1920] 1 Ch 77, the court allowed the issue of shares by directors to prevent a hostile takeover and to dilute the influence of hostile shareholders, because the majority of shareholders approved. This was despite the fact that the power had been granted solely to allow the raising of capital. However, in Howard Smith Ltd v Ampol Petroleum Ltd [1974] AC 821 the Privy Council held that where there were two purposes for issuing shares, to raise capital and to prevent a takeover, the proper purpose of raising capital had to be the dominant purpose. In Re Looe Fish Ltd [1993] BCC 368 the directors were disqualified under section 8 of the Company Directors Disqualification Act 1986 for allotting shares for an improper purpose. Section 173 requires the directors to exercise independent judgment. This is a restatement of the common law duty on directors not to ‘fetter their discretion’. This has acted to reduce the risk of directors being in a conflict of interest situation be disabling them from entering agreements which might prevent them from acting in the best interests of the company in the future. In Fulham Football Clun and Others v Cabra Estates Plc [1994] 1 BCLC 363 the company was paid money in exchange for not opposing property development plans. As the planning process drew out, the question arose of whether the directors had fettered their discretion by agreeing never to oppose such plans. However, the Court of Appeal stated that where a â€Å"contract as a whole [was] bona fide for the benefit of the company† it was valid and the directors could bind themselves to do whatever was required to fulfil it. Section 175 prohibits directors from entering a position where his interests actually or potentially conflict with those of the company. If the constitution of the company permits, the directors can authorise a conflicting situation to be entered into, so long as the relevant director does not vote. Section 175 also requires the director to declare their interests in any contracts, and under section 170, this duty extends after the director has ceased to hold office. The declaration is made to the board. The potential complexity of such situations can be seen in Menier v Hooper’s Telegraph Works [1874] LR 9 Ch D 350 in which the James LJ held that a majority shareholder could not prejudice the interests of the company because of its own conflicting interests. Similarly, in Cook v Deeks [1916] 1 AC 554 the directors sought to conclude the final round of contracts in a large railway development programme in their own names. The court held this was clearly in breach of their duty . In Scottish Co-operative Wholesale Society Ltd v Meyer [1959] AC 324 the directors say on the boards of both a parent and subsidiary company, and as soon as it emerged that the interests of the two companies were conflicting, the directors could not longer remain in that position. As Lord Cranworth said in Aberdeen Railway Co v Blaikie Bros (1854) 1 Macq 461 (HL), â€Å"it is a rule of universal application that no one, having [fiduciary] duties to discharge, shall be allowed to enter into engagements in which he has or can have a personal interest conflicting or which possibly may conflict with the interests of those whom he is bound to protect.† One area that the courts have found difficulty with is when a director comes across a profitable opportunity as a result of his position as director. This situation arose in Regal (Hastings) Ltd v Gulliver [1942] 1 All ER 378 in which a cinema company sought to lease two other cinemas. A subsidiary was formed for the purpose, but the owners of the two cinemas would only agree to the lease if the authorised share capital was paid up. As the parent could not afford to do so, some directors personally purchased shares in the subsidiary. When it came time to sell the shares in the subsidiary, the company demanded that the directors account to the company for the profits they had made, and the House of Lords held that they were liable to do so. This was despite the fact that the company would have been unable to exploit the situation because of its own lack of funds. The same principle was applied in Industrial Developments v Cooley [1972] 1 WLR 443 in which a director learned information which would have been profitable to the company and kept it to himself. He then used the information to secure a position at a rival firm and left his present company. His present company could not have secured this position itself and so could not have benefited in the manner in which the director had. Nevertheless, the court f ound that the director had to account to the company for the profit he had made as a result of information gleaned in the course of his directorship. Gencor ACP Ltd v Dalby [2000] 2 BCLC 734 affirmed that it is no defence that the company would not have exploited the opportunity, although the shareholders can approve of the action and this would justify the director. As a result of the case law and the wording of the relevant provisions of the 2006 Act, it can be concluded that a director is disallowed from entering a position where one of his person

Impacts of Amalgamations and Takeovers

Impacts of Amalgamations and Takeovers Chapter 2: Literature Review 2.1. Introduction Investigators have been analyzing amalgamations and takeovers in the context of their characteristics and the impact on the development of both the entities over the past several years. In actuality, Weston et al. (2004) opine that the experts and researchers in the field have provided a large quantity of records related to the topic. There are many reasons why companies follow development policies related to amalgamations and takeovers. This permits rapid acceleration in addition to having a quick and instant approach to markets, both local and international. It is also likely to touch renowned brands, apply knowledge and skill, and widen the dimension and extent without losing time. In the sphere related to real estate, a participant (real estate firm) may want to promote a mutual organization for funding ventures on an individual basis. It may also consider entering into a joint venture with a construction enterprise in the domestic market so as to execute the venture as per assur ed measurements and highlighted conditions as stated by Jensen (2006). Clients are reassured when they involve themselves with big enterprises, which have a great degree of brand reputation and remembrance. During these times, they articulate their backing, not merely as clients but also as financers as they buy stakes so as to invest money in the enterprise. It also possible for a company to advance by augmenting returns or managing expenses which in turn can be attained by reorganizing and reconfiguring finances apart from using creative methods and reengineering. Some enterprises may also purchase brands, goods, and utilities to expand the goods portfolio of the enterprise. The capability of an enterprise to undertake a development policy by reallocating its resources in creating different facets of its presence was maintained by Hogarty (2000). This could be denoted by its production unit, RD, and through creating and promoting its brands and setting up more projects in parallel or varied spheres. Firms may also purchase extant enterprises or amalgamate with others to attain their objectives. Amalgamations and takeovers assist in accelerating development as the roles pertaining to infrastructure, branding, and manufacturing are clearly set up. Superior mediums which endorse development comprise of contracts, treaties, and agreements for varied ventures for a pre-determined time. All across the world, international corporates and enterprises are entering into purchases of and amalgamations with new firms, forming joint ventures and such equivalent associations on a common basis. Nearly fifty percent of the contracts pertaining to amalgamations and takeovers in India have been initiated by global enterprises. In 2005 alone, India witnessed global contracts of around 58 percent, a number which was double compared to Japans agreements at 21 percent. Internationally, amalgamations and takeovers entail dogmatic frameworks particular to a specific nation and the labor unions of the enterprises. Post the 1990s, economic revolutions have been occurring globally and this has seen a growing attraction for amalgamations and takeovers. The financial segment witnessed a newness which saw modifications being made to possession and trade regulations, an increase in the disposable earnings and as a result, the capacity to discover newer marketplaces and newer chances. Firms are now fully utilizing the reduced interest rates and cost of capital. This has assisted several enterprises in broadening their scope of operations at the domestic and global levels through partnerships, associations, amalgamations, and takeovers. Additionally, the presence of many global media enterprises which publish information pertaining to contracts and partnerships on a large extent-particularly in segments related to production, cars, retail and others. On the other hand, it is extremely crucial for companies to ensure specific advisory metrics before they perform their functions related to amalgamations and takeovers, especially in huge markets which have not been discovered. Amalgamations and takeovers also have the ability to shift the stakeholder worth affirmatively or adversely, which may result in a scenario, which eats away into the prosperity. When local takeovers in addition to global amalgamations get transformed into deficit-making and zero-worth developing patterns, all of these experience impediments. When stakeholders are not going to benefit from such projects, the costs of shares decline and thus, such agreements must consider all the primary essentials before opting for the linked choices. The influence of amalgamations and takeovers may be favorable or harmful to the development and this may take a long time and also be extremely costly for a total revival from an impediment. The existing segment also highlights the investigations and examinations undertaken on the topic by analysts. One needs to have sufficient data evaluation and also conduct hypothetical tests while assessing the influence of amalgamations and takeovers. Adequate links should also be deduced to comprehend the reason and impact correlations in amalgamations and takeovers in context to the criteria such as development of trade, stakeholder worth, productivity, and general performance. As the current study is linked to the influence of international amalgamations and takeovers, it is crucial to analyze the global amalgamations. Global partners who function from India while being based in the European Union framework have been examined depending on specific extant data. Additionally, domestic amalgamations and takeovers have also been analyzed. 2.2. Theoretical Background: Mergers Acquisitions (MAs) 2.2.1. Definition Amalgamations and takeovers can be superiorly comprehended as development polices to enhance the income of the enterprise and also, its capital foundation. Sometimes, for two enterprises, with similar or dissimilar trade functions, to amalgamate on specific ranks is a superior trade choice. An amalgamation of this type assists in imparting a blend of experience and finances. A commercial amalgamation of this type functions as a solitary body between edifying impacts and worth values of a commercial amalgamation and takeover (Jensen and Ruback, 2003). Though the phrases ‘amalgamations and ‘takeovers are frequently employed collectively, they are two extremely varied procedures. Amalgamations describe the merging of two different enterprises into a single entity. The two enterprises join each other, and shift all their resources and functions into a new one. This procedure includes the merging of all types of resources-employees, manufacturing facilities, and functions into the new entity that is shaped. The new entity shaped out of this has its individual distinctiveness, edifying representation, and groups of convictions. It is pointless to state that they are possessed by both the parties which share their resources to develop the new identity (Huang and Walkling, 2007). A takeover is considered as the purchasing-out procedure of an enterprise by another with the goal to stimulate management of its assets, investments, and functions. Takeovers occur when a firm purchases a major share of another firms stakes, assets, and liabilities (Weston et al., 2004). Firms experience a supplementary benefit when this occurs as they get the management apart from the functioning assets, in contrast to when they purchase merely the stakes, in which scenario they have to only compete with the other shareholders. Purchasing assets includes more expenses and offers an extensive capital foundation (Singal, 2006). Now let us consider acquisitions. This phrase also has been employed for many perspectives and is understood also. Takeover is a vague expression and though it may denote a context similar to acquisitions; the two are actually varied types of trade agreements (Jensen, 2006). A takeover is when a purchase is conducted without acquiesce or permission of the ente rprise being taken over. Takeovers come with an adverse action that entails the attaining of another firm with the intent to ‘manage it. When an enterprise desires to take over another firm, it tries to purchase all its shareholders. Takeovers are the ones which do not have the approval of the firm being purchased and they are often nearly undertaken as a hostile proposal. This now clearly explains the different expressions and implications attached to amalgamations, acquisitions, takeovers, partnerships, and associations and how their context is based in the situation in which they are being applied. 2.2.2. Types of Mergers Acquisitions Mergers can occur at parallel, perpendicular, or   multinational levels. Each kind of amalgamation has not only its own typical characteristics but also a distinct impact on the work processes and trade functions. Horizontal Mergers When two enterprises or enterprises that have parallel trades, which amalgamate to develop an entirely novel trade enterprise, it is known as a parallel merger. The enterprises which enter into a parallel amalgamation combine their assets as individual enterprises to shape a novel entity. These enterprises are thus capable of making a more robust enterprise which has a wider capital base and greater resources. The rationale behind this is to acquire a larger market share and become a dominant force in the market (Shleifer and Vishny, 2009). Such parallel amalgamations provide several benefits. They enable larger presence and greater range in addition to optimal performance ability to the novel entity. The two previously distinct entities now have the benefit of augmented resources capable of executing procedures in a superior method to ensure consistent supply of goods, which are of much better quality (Mitchell and Mulherin, 2006). Even in India there are a few instances of parallel amalgamations, for instance, the amalgamation between Indian carriers which occurred between Lufthansa and Swiss International apart from Air France and KLM (Bottazzi et al., 2001). The United Kingdom (UK) has witnessed several parallel amalgamations. In reality, the results of several investigations have depicted that nearly 60 percent of all amalgamation agreements which have occurred post-2001 have been parallel amalgamations (Firth, 2000). The same notion is also put forth by Berndt (2001). He also states that most of the amalgamations which happened post-deregulation and liberalization of the economy were parallel in character. Another instance of a parallel amalgamation like the one of Birla Cement and Larsen Toubro (LT) is related to the cement sector. Additionally, the amalgamation of Kingfisher Airlines and Air Deccan in addition to the one between Jet Airways and Air Sahara depict parallel amalgamations in the airlines sector. The Tatas and the Birlas are two huge corporate entities, which have amalgamated in the telecommunications sector. Vertical Mergers A perpendicular amalgamation is one in which enterprises which are elements in a supply chain or which function as utility suppliers or subsidies in the equivalent type of trade resolve to become one entity. It is noticed that such amalgamations occur when firms resolve to augment their forte in the supply aspect (Agrawal et al., 2002). Perpendicular amalgamations manage to keep rivals away by maintaining stress and managing their supply firms. The perpendicular amalgamation is thus capable of seizing a bigger market share for their goods while the supply group fails to back the goods of other contenders. This plan assists the enterprises to closely react to their clients needs. The element pertaining to the rivals is capable of keeping the prices from rising as the supplies are not reimbursed for (leanmergers.com). Logically, the outcome of this action is an extremely robust management and more revenues as the firms attain an upper hand over their contenders. An instance of perpendicular amalgamation is the one between Ford and Vauxhall who are car producers, who have acquired or purchased automobile enterprises. When Ford purchased Hertz, it was an instance of a perpendicular amalgamation (Loughran and Vijh, 2007). Another example of a perpendicular amalgamation in the telecommunication industry is that of Reliance Communication Ltds purchase of Flag Telecom. Conglomerate Mergers Multinational amalgamations occur amongst two entirely varied enterprises. Such enterprises are participants at distinct degrees and have no equivalents in the good variety, markets, clients, supply chain, or any other criterion. Multinational amalgamations occur amongst such enterprises and a novel association is shaped in addition to new trade contracts. Multinational amalgamations show only one line of power or authorization, which manages the trade functions from a solitary aspect of knowledge, resources, client power, and market experience which guarantee enhanced trade after the multinational trade which occurred before (Asquith et al., 2003). Multinational amalgamations are executed so as to diffuse the dangers over an extensive base and thus avoid any chief impediment for the enterprise (Huang and Walkling, 2007). Financial Acquisitions Monetary attainments are related to the capital and fiscal aspect of trade plans such as Management Buyouts (MBOs) or Leveraged Buyouts (LBOs). Such purchases are not considered in the same context as amalgamations and takeovers (Travos, 2007). 2.2. Stimulus for Amalgamations A large chance to develop the value of mergers is when incentives for the same are anticipated or envisaged by investors. Investigators such as Asquith et al. (2003), Agrawal et al. (2002), and Andrà © et al. (2004) have developed comprehensive data related to the topic pertaining to the incentives for mergers. Mergers must be discouraged by varied reasons such as a superior geographic market, varied economies, superior capabilities and price efficient conduct, widening of the trade, the synergy incorporated, and shifting assets to superior administrators so as to maximize the assets and create superior results, which is the chief objective. It has been proved that mergers and amalgamations are distinctive mediums related to financing in the context of advancement by many investigators. The chief idea or objective behind attaining a profitable investment would be important, particularly if such a concept is considered. In the event of the presence of incentives such as professions or sometimes pure respect improvement occurrences, the possibilities of investments becoming valuable, particularly when there are totally varied incentives for the varied enterprise to triumph and create the line of business. In the event of mergers, at the point when the primary incentive shapes the real advantageous investment, one has to consider the reason why the merger may seem to be priceless. A primary reason may be the lack of the expanding capability to access an unexploited market. One may anticipate a merger so as to achieve these objectives in an effortless manner (Gugler et al., 2003). For a triumphant merger, one should ascertain aspects of robust revenues and synergies. The focus in this matter should also lie on comprehending the incentives for cross-border mergers. It is noticed that dissimilar to domestic mergers for cross-border mergers, one needs to develop an incentive evaluation (Conn et al., 2001). The FDI incentives would resort to internalization, ownership, and position advantages as good instances as mentioned by Moeller et al. (2004). In the context of cross-border mergers, a merger is not likely to have unique ownership advantages. On the other hand, locational advantages may be unclear. Thus, in lieu of purchasing an enterprise in a totally varied geographical market, there are many idea-procedures which happen constantly. The majority of crucial internalization advantages in the instance of cross-border mergers are when products are sold overseas by one nation to another. In the event of the incentives, the OLI framework provides a backdrop for the objective of cross-border mergers, but other factors are also very crucial. It is considered by Chen and Findley (2002) that there is a speed if the retrieval to international markets since those from Greenfield investment cannot be equaled. By the end of the initial ten years of the 21st century, the waves in mergers were analyzed by Danzon et al. (2004). This was later referred to as the ‘Cross Border wave. In contrast to other waves of the century, Evenett explained the trends of the merger wave to be distinct. The utility segment displays how the merger wave comprises of more mergers since specific elements had become components of the ‘Cross Border and more so, with the liberalization effects in addition to the industrial monetary facet, this has additionally intensified privatization. There had to be a greater milieu to assist cross-border mergers. With the chief investment, the incentives had to be linked to the dogmatic surrounding to guarantee an element of the merger wave as depicted by Evenett. For other such grounds, cross-border mergers rise as depicted by Nicholson and McCullough (2002). When the researcher has to handle the theoretical information pertaining to mergers, he tries to present an expansive literature for better understanding. In the context of mergers, a maximized direct policy contention seems to be the most superior and is accountable for the impact of the mergers. A reasonable facet of the investigation discusses how both, markets and clients in the market commence many types of mergers. There has also been a theoretical investigation relating to ideas such as benefit predictions, envisaged variations in the outlays, diversified and varied quantum, in addition to who will eventually gain or lose on account of mergers. These theoretical investigations found their crux in oligopoly markets. Oligopoly markets have been the only crucial markets to utilize the rationale behind mergers opine Conn et al. (2001). So as to manage such market situations, a firm which enjoys a monopoly generally cannot enter into a merger. In a merger of firms, there would be no impact on the market outcomes. In varied production scenarios, the strengths of demand and cost in varied types of oligopoly markets function in different ways while the emphasis of the literature is on studying mergers. 2.3. Cross-Frontier There are several literatures which pertain to theories related to mergers. In reality, none of these literatures actually differentiate that in the management of international merger procedures there must be variations. To achieve cross-border mergers several simultaneous investigations have been undertaken, which complement that there are several literatures dealing with the impacts of these mergers. In terms of globalization, it relies so this is a close expansion and additionally it fulfills international economy apart from varied types of market endeavours to expand international firms of their functions. With consistent methods related to cross-border mergers there is relevant contention for the perusal of â€Å"Indianization† of different segments as described by Ozawa (2002). On account of the absence of attempts in merging administrative techniques, business is the driving aspect behind communication and culture which is why different cross-border mergers were unsucce ssful states Finkelstein (2009). Every type of merger is impacted by these matters instead of cross-border agreements which may be dominant. A further peril is that cross-border contracts are entered into merely to gain benefits. To regard the facets of wondering literature there are subjects and anxieties in context of the methods which incorporate cross-border mergers that have been completed. For cross-border mergers, informative differences are real in the hypothetical model facet as stated by Estrin (2009). In the process of achieving merger benefits, jargon, cultural problems, and official systems are cited as types of primary obstacles. The capabilities to draw attention of skills from other enterprises have been provided to differences useful influence procedures, attainment of communal mergers in firms and the particular speed. Generally, between the links amongst the merging methods of firms informative differences are the source of distrust, to which the triumph can be impeded by the communication matters. There is no clear theoretical model on the other hand, which is related to the impediments which harm the efficiency; despite it being a hypothetical exemplar. In contrast to domestic mergers, for a successful cross-border merger, however, this proves that the closer the facets, the more the obstacles, and these are limited to specific countries since many of th ese obstacles are linked to the regulatory and informative systems prevalent there. According to the origin of enterprises in context to the obstacles, there exist behavioral national variations which need to be expected and depend on the country. By being a source of synergy, informative differences can enhance merger ability in addition to generating benefits as opined by Fama (2009). However, impediments can be built by this, for expanded manner of spreading that is more possible. Instead of any of the domestic mergers participating in cross-border mergers as to gain more useful outlooks for the firms a theoretical exemplar method has been developed by Bjorvatn (2001) for the profit of handling cross-border mergers. By allowing varied mediums of entry in addition to cross-border mergers and for assessing and impacting triumph of cross-border mergers in addition to assessing entry outlays these are the primary variables, he employed to follow Fama (2001). Greenfield investment has been shifted into avenues which are minimally attractive by entry outlays, by methods using cross-border mergers augmented to the degree of revenue. On the other hand, in that market for achieving success as expected facets domestic mergers are regarded to be linked to a rise in the entry expenses. In contrast to the domestic ones in envisaging cross-border mergers success focus on hesitancy which is the outcome in this scenario. While choosing the expected outputs in addition to the entry outlays, the cross-border mergers can also provide access benefits to the distinctive market. In this regard, for both domestic and cross-border mergers, there is present, a theoretical merger literature. In terms of price uncertainty and demand exemplar depending on the matter of the doubt as put forth by Das and Sengupta (2001) both in domestic and cross-border mergers is the correct method. 2.4. Experiential Study MAs are expansion strategies that corporates adopt to increase scale and market share rapidly. They are also used to diversify business interests or acquire technological capability, capital, expertise, or enter new markets. From the business perspective, growth is seen in terms of capital, profits, and shareholder value, operations become more efficient, and business registers improved performance. One of the major benefits of MA transactions is the decrease in costs as resources are shared and processes are streamlined. There have been many instances of companies taking the MA route to save costs like Wells Fargo, whose acquisition of First Interstate in 2006 resulted in cost savings of USD 1 Billion (Jensen and Ruback, 2003). With the restructuring of processes and systems that follow a merger, companies become more efficient and effective as the organizations operational dynamics are realigned and streamlined. The benefits of operating on a large scale, reduction or elimination of wasteful and duplicating processes, the sharing of personnel and other resources all lead to high savings and better performance. The sharing of resources including capital infusion reduces costs and facilitates growth and with open lines of communication, a company can maximize its return on investments. Large-scale operations give companies larger purchasing power and rates for material in bulk can be contracted at far cheaper rates than if supplied to separate companies. MAs deliver value in terms of cost savings, operational efficiencies, large-scale economies, increased market share, diversified product lines, and expertise and technology. Bradley and colleagues (2008) observed that mergers and acquisitions in allied industries also create effective synergies for companies to cut costs and increase returns. Large-scale operations lead to better economical management which gives companies a better chance to compete in the market as they can deliver value to the customer by providing better products and services at cheaper costs. As mentioned earlier, MA deals increase customer base and market share leading to increased revenues and profits. It also helps eliminate unhealthy competition as the new merged enterprise now strives for dominance instead of competing with each other as they did before the merger like the successful Hindalco-Novelis acquisition. Acquiring a company is the quickest and most effective way to enter a new market or increase market share and standing in a current area and location of operations. A company can grow at a faster rate and be market ready virtually by Day One whereas in a Greenfield project, a company might have to strive for years to start production and penetrate the market. A merger also effectively deals with competition as shared resources, expertise and technology coupled with the economies of scale make them competitive and help increase market share.   To be considered successful, mergers and acquisitions either register higher revenues or effectively reduce costs. There has been a lot of research indicating that cost saving rates has been higher than increased revenue figures in MA deals. This is not to say that companies have not grown in terms of revenue. It merely indicates that the rate of growth is not matched by the rate of savings. Operational efficiencies, cost savings, and increased revenue are the three vital objectives of a merger (Jarell and colleagues, 2008). Andrade and colleagues (2001) have researched and studied the success of mergers and acquisitions in India and whether the stated objectives of the MA have been met. Between 2005 and 2008, 26 MA deals were struck with international companies from 13 different countries. Their study revealed that most mergers did not register high profits or top-line growth. Some companies showed negative rates of return and thus the objective of increasing revenues taking the MA route was not successful. Similar results have been recorded in the US although 107 mergers that took place in the US in 2000 showed higher valuations and asset increases. Shareholder value and company valuations in India did not increase as substantially as they did in MA deals that took place in the UK (Anandan and colleagues, 2008). The main motivational drivers for mergers and acquisitions are market dominance and efficiency whilst growth of shareholder wealth though a prime factor is not impacted as heavily and sometimes falls. Research indicates that valuations are less when larger multinational companies pick up controlling stake. 2.5. The Indian Merger Environment This study examines the MA environment in India and also studies previous research on MA analysis of firms in Europe. A major portion of this study is devoted to the understanding of mergers and acquisitions in the EU. With the opening up of economies globally and governments announcing policies to attract FDI and amending rules and regulations for foreign companies to do business, a lot of international MA deals have been witnessed in Europe. A lot of research and information is available on business collaborations in Europe along with the entry of cross-border companies. These studies are detailed and comprehensive accompanied by detailed analysis (Chaudhri, 2002). A lot of mergers in Europe took place at the turn of the millennium. Bridgeman (2000) observes that the UK, France, and Germany have been aggressive in conducting MA deals across the world. International companies have entered their markets with heavy investments and taken over local companies as well but these countries impose restrictions on certain industries and sectors. Luxembourg, for one, however, does not have any restrictions. The European Union Merger Control Act was formulated in September 2000 to assess and evaluate mergers and acquisitions as Europe tried to centralize operations to facilitate transnational transactions. This Act was amended in 2004 and 2008. The objective to bring about uniformity in procedures across Europe for business though noble is contentious as there are many differences between the richer nations and countries not doing as well. There are also policy shifts and business conditions that create issues related to the venture and investors are often forced to rethink their options (Bridgeman). Mani (2005) observes that the nations who are far more economically developed hold the edge in cross-border negotiations. The European Merger Control Act came into force on 21st September, 2000 and further amendments were carried out in 2004 and 2008, but these were only enacted on 21st December 2009 giving the European Commission more discretionary powers (Anandan and colleagues, 2008). Mergers across borders demand that cultural and social uniqueness and sensitivity have to be factored in and this is controlled by the EC Authority. The amendment in 2008 was to create and empower the EC Authority to be able to function as a single window facilitator and ensure social and economic ends were met and local interests protected through each venture (Rice). The European Commission Green Paper (2001) has also highlighted the amendments led by the Act but there still are a lot of problems and procedures that are yet to be sorted out by the Act especially those to do with applications and filings. These gaps and ambiguities create roadblocks in MA transactions especially when international companies merge with domestic companies to create powerful alliances and companies such as the PO-Stena and American Airlines-British Airways in the UK which faced problems due to differences in policies (Bridgeman, 2002). The European Commissions success with the single window facilitation for mergers and acquisitions in Europe is still to be proven. The EC intervention to facilitate and fast-track procedures for mergers in Europe was a noble intention especially the amendments in 2008, which empowered the commission considerably (Basant, 2000). There are about 200 mergers that have benefited from this Act. In fact after the amendments in 2008, mergers increased from 10% to 15%. Thus, the issues before the 2008 Amendments and after need to be studied in conjunction to understand benefits, valuations, and profitability impact on the host nation. Many deals may have been affected adversely or may not have been affected as such due to the expectation of the changes in policy. Deals require clarity, timing, focus, and policy and any variable that could be affected due to ambiguity of policies or lack of trust is bound to affect the merger. The European framework is a structure, which is far more rigid and severe than the USs as illustrated by the GE-Honeywell experience and alliances in aviation. These strictures impact profitability in Europe and investors end up with lower margins. The Merger Control Act however, remains a structure that any nation can learn from and adapt to suit its own conditions and environment. Mehta and Samant (2007) suggest that this Act could be adapted to suit India in the current business environment. A reduction in companies going in for restructuring or strategic alignments has put pressure on countries with extended and cumbersome policies as companies prefer to shif