The government is making efforts to simplify norms for mergers. Under a new proposal, companies may be exempt from seeking High Court sanctions. The Ministry of Company Affairs is working on two types of clearances for mergers: one is “contractual mergers”, under which companies needn’t wait for the High Court’s approval; they can decide to merge through a contract among themselves, which should be approved by the shareholders later.
The second proposal aims to simplify procedures for mergers between group companies. The idea is that if there is no involvement of outsiders, it is unfair to subject the internal matter of a group to a rigorous due process.
— Manu Kaushik