23.6 MERGERS AND TAKE-OVER REGULATIONS IN INDIA
The Indian Companies Act, 1956, provides for combination among industrial and business enterprises. As per the Act absorption or amalgamation are possible only when such activities are permitted by the memorandum of association of the concerned firm. If such provisions are not contained in the firm’s memorandum, they should be approved by the shareholders and also by the Company Law Board. Besides, the stock exchange listing the shares of the combining companies should also be informed.
The Indian Companies Act, 1956, restricts a company to acquiring the shares of another public company only up to 25% of its total paidup capital. Whenever such holdings exceed 10% of its subscribed capital, the ...
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