New York City, NY asked in Mergers & Acquisitions for New York

Q: If companies that are based in different states merge, how do you decide which state's law should apply to the merger?

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3 Lawyer Answers

A: The merger agreement dictates which state laws apply. As to that decision it depends if it is a merger of equals or one is entity will remain in control. The decision should be based on what is best for the merged entity.

A: The parties may agree on which state's law is to govern the transaction. Typically, it is the law of the state of the surviving entity.

A: The contract may say so, the parties may agree, or it may be required based on the industry or related state laws.

See: http://www.aeesq.com/business-law/business-law-introduction/

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