Merger Under Companies Bill, 2012
8 Pages Posted: 11 Oct 2013
Date Written: August 24, 2013
Due to change in corporate structures and practices the government has introduced Companies Bill 2012 which was passed by Lok Sabha on 18th December 2012 and by Rajya Sabha on 8th August 2013. A more comprehensive framework has been built in through Chapter XV for compromises, amalgamations and arrangements in the Companies Bill 2012. The Companies Bill contains 10 clauses i.e., 230-240 regarding M&A whereas Companies Act, 1956 contained only 7 sections of which only 4 particularly dealt with M&A. While some of the proposals are intended to make it easier for companies to implement schemes of arrangement, others impose the much required checks and balance to prevent possible abuse of these enabling provisions by companies.
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