Speeding up fast-track mergers: Govt proposes wider scope, action awaited

Company Law experts said listed companies were unable to take the benefit of the fast-track mechanism for mergers with a wholly owned subsidiary since approval of all shareholders was required

Last week, the Ministry of Corporate Affairs brought a much awaited proposal on widening the scope of fast-track mergers under the Company Law. Steps such as allowing mergers of any subsidiary, as long as it is not listed, with its wholly owned subsidiary or mergers between fellow unlisted subsidiary companies belonging to the same group were in line with industry demand. However, a lot remains in the industry wishlist when it comes to the fast-track mechanism and simplifying mergers.  

Lowering thresholds for shareholder approval, allowing listed entities to merge in fast-track mechanism and easing the process for micro, small and