The ability to undertake corporate restructuring and M&A through private or statutory arrangements has served as a touchstone in deal making globally. Statutory arrangements, at times, offer several advantages over contractual/ private arrangements. There are, however, several commercial, legal and tax considerations that have to be considered before opting between a statutory and private arrangement. The speed and ease with which a business can undertake an arrangement also plays an important part in such decision-making. In India, private arrangement is more popular than statutory arrangement for undertaking M&A as the latter is contingent on receipt of regulatory authorisation. Statutory arrangements in India were initially permitted only by way of National Company Law Tribunal (“NCLT”) approval.
Associate in the General Corporate Practice at the Ahmedabad office of Cyril Amarchand Mangaldas. Dhwani specializes in general corporate advisory, including inbound and outbound investments, mergers and acquisitions, joint ventures, business transfers and private equity. She can be reached at email@example.com.