With the recent enactment of the Companies Amendment Act, 2017, the legislature’s attempt to clean up the provisions of the existing company law and to facilitate easy business for companies will get mixed reactions. Admirers may claim this as a great piece of legislation to ease the company law, but the fine print doesn’t show this at all. In particular, for mergers and acquisitions (M&As), many provisions are amended now, which are rather confusing than earlier. This column analyses some aspects that will affect M&As. The meaning of ‘significant influence’ used for the purpose of defining an ‘associate company’ has been amended.
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