Streamlining Corporate Mergers: Government's Move to Simplify Procedures

The Union corporate affairs ministry has proposed amendments to improve the ease of corporate mergers by simplifying the fast-track merger process as per Section 233 of the Companies Act, 2013. Public comments are invited on these amendments, aiming to widen the scope of such mergers.

The Union corporate affairs ministry is taking significant steps to boost the ease of doing business. Proposals have been unveiled to amend rules regarding fast-track mergers, targeting a streamlined process.

Section 233 of the Companies Act, 2013 facilitates these fast-track mergers, enabling certain companies to merge or amalgamate with the central government's approval. The power to oversee these processes has now been delegated to regional directors.

The ministry seeks public input on these amendments by May 5, with a focus on expanding the fast-track merger capabilities. Echoing this sentiment, Finance Minister Nirmala Sitharaman emphasized in her February Union Budget speech the government's commitment to simplifying and broadening the procedures and requirements for company mergers.

(With inputs from agencies.)