Still Agreement

Still Agreement

The new delegation obtained only trivial changes to the previous draft agreement. [12] It established that all subsequent agreements and administrative arrangements between the British Crown and Nizam would be maintained with the Indian government. These include defence, foreign affairs and communication (the three themes that are normally addressed in the accession instrument). The agents would be exchanged between Hyderabad and India. The Indian government has agreed to relinquish the functions of the supreme government. The status quo agreement is expected to remain in effect for a one-year period. [13] The agreement was signed by Nizam on November 29, 1947. [14] However, if a status quo agreement were to be considered the most appropriate option, efforts should be made to ensure that the parties explicitly agree on the intentional effect of the impasse (i.e. whether it suspends or extends the time limit for the purposes of the restriction), and that the text of the status quo agreement clearly and systematically reflects this intention. As a result, the status quo agreements were used to suspend the statute of limitations and the applicants had asserted their rights in a timely manner. According to K.M Munshi, appointed India`s general agent in Hyderabad, the Indians felt that the conclusion of a status quo agreement with Hyderabad meant that India had lost control of Hyderabad`s affairs. The Hyderabad State Congress opposed it because it was seen by the Indian government as a sign of weakness.

[16] V. P. Menon stated that Nizam and his advisers viewed the agreement as a respite from which Indian troops would be withdrawn and the state could establish its position to maintain its independence. [17] A status quo agreement is a contract that contains provisions governing how a bidder in a business can buy, sell or vote shares of the entity. A status quo agreement can effectively paralyze or stop the hostile takeover process if the parties are unable to negotiate a friendly agreement. Some local leaders of the princely states have tried to buy time by declaring that they will sign the status quo agreement, but not the accession instrument until they have had time to make up their minds. In response, the Indian government considered that it would only sign status quo agreements with the states that joined the Union. [4] Until August 15, 1947, the agreed date and date of India`s independence, all but four princely states, which are Indian, signed about 560 of them, both the accession instrument and the status quo agreement with India. The exceptions were Hyderabad, a large state in central South India, which received a two-month extension, and three small states of Gujarat: Junagadh and its subsidiaries (Mangrol and Babariawad). [5] A status quo agreement can be used as a form of defence of a hostile takeover when a target company receives a commitment from a hostile bidder to limit the amount of shares the offeror buys or holds in the target company. By committing to the promise of the potential acquirer, the target company saves more time to set up new takeover defenses.

In many cases, the target company promises in return to repurchase the equity holdings of the potential purchaser for the purpose of an increase. On 15 August, the State of Junagadh implemented the accession instrument and the status quo agreement with Pakistan.


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