Mergers & acquisitions involve the restructuring of companies through amalgamation, acquisition, or transfer of control. In India, such transactions are governed by company law, regulatory approvals, and contractual documentation.
This page provides general information on the legal aspects of mergers and acquisitions.
Legal Nature of M&A Transactions
M&A transactions require compliance with:
- Corporate laws
- Regulatory approvals
- Contractual obligations
- Judicial and administrative processes
Legal advisory in this area focuses on documentation, statutory compliance, and interpretation of applicable laws.
Common Legal Components
- Drafting and review of transaction documents
- Legal due diligence from a compliance perspective
- Regulatory filings and approvals
- Interpretation of shareholder rights and obligations
Applicable Laws
- Companies Act, 2013
- SEBI Regulations (where applicable)
- Competition Act, 2002
- Contractual and corporate regulations
Frequently Asked Questions (FAQs)
What laws govern mergers and acquisitions in India?
M&A transactions are regulated under the Companies Act, 2013, Competition Act, 2002, SEBI regulations (where applicable), and contractual laws.
Is court approval required for mergers?
Certain mergers and amalgamations require approval from the National Company Law Tribunal (NCLT).
What is legal due diligence in M&A?
Legal due diligence involves reviewing compliance, liabilities, contracts, and legal risks associated with a transaction.
Are shareholders’ approvals necessary in M&A transactions?
Yes, shareholder approval is often required, depending on the nature and structure of the transaction.