Mergers & Acquisitions/Business Statements

“Mergers and acquisitions (M&A) under the Companies Act 2013 in India are regulated by Sections 230-240 of the Act, along with the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016. 1.M&A transactions in India typically involve the following steps: 2.Approval by the Board of Directors: The board of directors of the companies involved in the merger or acquisition must first approve the proposed transaction. 3.Approval by shareholders: The shareholders of the companies involved must then approve the transaction by way of a special resolution. 4.Approval by the National Company Law Tribunal (NCLT): Once shareholder approval is obtained, an application must be filed with the NCLT for approval of the merger or acquisition. 5.Notification to regulatory authorities: Depending on the nature of the transaction, approval may be required from regulatory authorities such as the Competition Commission of India (CCI) and the Securities and Exchange Board of India (SEBI). Implementation of the transaction: Once all approvals are obtained, the merger or acquisition can be implemented as per the terms agreed and specified in the Scheme documents.”