Debabrata Dash, B.A. LL.B (Hons), ICFAI Law School, Hyderabad
ABSTRACT
One way to achieve internal growth can be by rationalizing operations, improving management and investing capital in the company's existing activities. Other tools and methods used to finance growth are mergers and acquisitions, joint ventures, strategic alliances, and so on. By completing any of the above exercises, companies may gain an edge over the rest of the competition.
Ever-growing domestic and global markets has pushed various business entities and companies to adopt M&A practice.Companies are using this to build different companies that cater to the needs of Indian corporate sector. These activities remained dormant until the 1991 policies that led to the departure of the former policies.
MRTP Act, ICA 1956, FERA Act had significant impact before the liberalization. Due to the restrictions that were created by those acts activities that pertained to the strategy of using mergers and acquisition were low in number.
For merger and acquisition steps followed by a banking company is same as any other company governed under Company Act.
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