What is merger, amalgamation, and restructuring?
Merger, amalgamation, and restructuring refer to corporate actions used to combine, reorganise, split, transfer, or restructure businesses, assets, share capital, or group entities for legal, commercial, tax, or operational reasons.
Why do companies undertake restructuring?
Companies undertake restructuring to simplify group structures, consolidate operations, improve tax efficiency, prepare for investment or exit, separate business divisions, reduce compliance burden, or improve governance.
Is NCLT approval required for mergers and amalgamations?
Many mergers, amalgamations, demergers, and schemes of arrangement require approval from the National Company Law Tribunal, along with board, shareholder, creditor, and regulatory approvals where applicable.
What documents are required for a merger or restructuring?
Common documents include scheme of arrangement, board resolutions, shareholder approvals, creditor details, valuation reports, financial statements, affidavits, notices, regulatory filings, and statutory records.
Can restructuring help before fundraising or exit?
Yes, restructuring can help create a cleaner corporate structure, separate non-core businesses, resolve ownership issues, improve governance, and make the company more transaction-ready for investors or buyers.