Legal issues and challenges of cross-border merger and acquisition under the companies Act 2013
Samit Kumar Maity Datta
All over the world Merger & Acquisition (M&A), whether being Domestic or Cross- border have been used as strategic tools for achieving growth, competitive advantage and creating wealth for share holder. Increasing number and value of International M&A deals shows that Cross-border M&A have gained more importance and popularity comparatively market expansion strategy through the setting up of wholly owned subsidiaries in overseas market. Cross- border M&A’s are a quick pathway to enter into new market. The growing popularity of Cross-border M&A are partly driven by the liberalization in the legal and regulatory regime all around the world. In this way a systematic and liberal law is required to boost Cross- border M&A deals in Indian corporate world, so Companies Act 1956 was replaced by the new Companies Act 2013. It is expected that the New Act 2013 would simplify life of corporate India, strengthen corporate governance norms and make India an attractive and safe investment destination. This article seeks to examine certain key changes with regard to Cross-border M&A regulation framework in India by Companies Act, 2013.