Legal Aspects Of Corporate Mergers And Acquisitions In India

Rajan Sharma, LLM (Business Law), Amity Institute of Advanced Legal Studies, Amity University Uttar Pradesh

CH. I: INTRODUCTION 1.1 Introduction

Understanding the theoretical underpinnings of M&A and liquidation is paramount before delving into empirical analysis. Originating within the intersection of financial accounting and economics, the discipline of financial management is heavily regulated by laws, rules, and guidelines, often necessitating the involvement of legal professionals in drafting complex agreements. Awareness of substantive legal frameworks governing financial operations is imperative for any finance practitioner to navigate borrowing schemes, capital issues, and corporate law formalities.

In light of the recession's impact on Indian companies and the ensuing uncertainty, there has been a notable surge in corporate restructuring activities, including mergers, acquisitions, and liquidations. Media outlets are replete with reports of such cases, underscoring the importance of comprehending these concepts. Market expansion strategies, particularly through M&A, have gained prominence among major industrial players, leading to increased competition domestically and enhanced market restructuring by multinational corporations operating in India.1