THE APPLICABILITY OF ANTI-ASSIGNMENT CLAUSES IN REVERSE TRIANGULAR MERGERS: AN AMERICAN APPROACH

Abstract: Reverse Mergers have grown as viable and profitable means of attaining public status in U.S. With a tightening of the laws surrounding the technique, the prospects of fraud have become minimal and Reverse Mergers have become a promising vehicle to take small companies public in U.S. In this direction the American markets Model for the small business issuer sets an example. As the trend has grown immensely in terms of its popularity and investments it has attracted many legal issues. One of the most controversial issues during the execution Reverse Merger deal is of applicability of anti-assignment clauses in Reverse Triangular Mergers. In this context the present article analysis the problem posed by reverse Triangular Mergers and various approaches adopted in U.S.