THE LEGAL IMPLICATIONS OF CORPORATE MERGERS & ACQUISITIONS ACTIVITIES
AUTHOR – TASKEEN SHOWKAT, STUDENT AT AMITY LAW SCHOOL, AMITY UNIVERSITY NOIDA, UTTAR PRADESH, INDIA
BEST CITATION – TASKEEN SHOWKAT, THE LEGAL IMPLICATIONS OF CORPORATE MERGERS & ACQUISITIONS ACTIVITIES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (2) OF 2024, PG. 749-758, APIS – 3920 – 0001 & ISSN – 2583-2344.
ABSTRACT
The complex legal frameworks and laws that impact M&A in India’s dynamic and ever-evolving corporate sector are the subject of this exhaustive study. Significant statutes including the Indian Income Tax Act, Foreign Exchange Management Regulation, and Insolvency and Bankruptcy Code are examined in this article. Regulations governing corporate acquisitions and mergers render these laws pertinent.
- What legal framework governs acquisitions and mergers in the Indian corporate sector?
- Which legal obstacles pose the greatest challenge for parties involved in business mergers and acquisitions in India?
- What is the impact of recent regulatory modifications on mergers and acquisitions within the corporate landscape of India?
A examination of the legal system in India revealed that acquisition and merger transactions are extraordinarily complex. The Indian Income Tax Act is essential to the financing of mergers and acquisitions. Another noteworthy law is the Foreign Exchange Management Regulation of the RBI. This regulation establishes the foreign exchange regulations that govern the issuance and allocation of shares to foreign organisations. In accordance with the 2016 Insolvency and Bankruptcy Code, the favoured purchase route is insolvent company resolution. Aspects of mergers and acquisitions such as asset transfers, stock exchange regulations, and court authorizations are covered in the text. Although mutual agreements may initiate the procedure, judicial approval is required. Prosecutorial bodies regulate mergers. Following the completion of the procedure, the merged company will be listed on the stock market and issue shares and debentures. In the context of M&A negotiations, an analysis is conducted on timing concerns, transaction structures, escrows, earn-outs, statements, warranties, and object identification. Strategic planning is emphasised in this article in relation to mergers and acquisitions. This report provides a comprehensive analysis of Indian mergers and acquisitions law for the benefit of stakeholders. This research offers a solid basis for formulating well-informed evaluations in the volatile economy of India. This organisation promotes accountability, transparency, and strategic foresight in merger and acquisition matters.
Keywords: Mergers and Acquisitions, Corporate Law, Legal Implications, Regulatory Framework, India.