Legal Framework of Merger and Acquisitions in India: In the Viewpoint of Companies Act 2013.

Abstract

The Companies Act, 1956 had almost reached its retirement age after having been in existence for more than five-and-ahalf decades. It was essential that robust and young corporate laws were introduced in the system. This journey began in 2008, when the Companies Bill, 2008 was first introduced in the Lok Sabha. However, it hit a road-block on its introduction in August 2008 and had to be withdrawn due to dissolution of the Lok Sabha. The Bill was re- introduced in Parliament in 2009 and was subsequently sent to the Standing Finance Committee. After considerable deliberation with stakeholders, the Committee presented its report to the Lok Sabha in August 2010. Taking into consideration the recommendations of the report, a revised version of the Bill was again referred to the Committee in 2011 with the inclusion of certain new provisions.