MERGERS play a crucial role in the corporate landscape. These help companies compete better, keep up with new technology and handle economic changes more effectively. Overall, mergers can be essential catalysts for growth and staying competitive in a fast-changing market.

In a merger transaction, one of the combining corporations survives and continues the combined business, while the others are dissolved, and all their rights, properties and liabilities are acquired by the surviving corporation. The effectivity date of the merger is crucial for determining when the merged or absorbed corporation ceases to exist and when its rights, privileges, properties as well as liabilities pass on to the surviving corporation.