Legal Procedure of Merger and Acquisition


The following is the summary of legal procedures for merger or acquisition as per Section 232 of Companies Act, 2013: 

   Permission for merger:

Two or more companies can amalgamate only when amalgamation is permitted under their memorandum of association. Also, the acquiring company should have the permission in its object clause to carry on the business of the acquired company.

   Information to the stock exchange:

The acquiring and the acquired companies should inform the stock exchanges where they are listed about the merger/acquisition. 

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