MUMBAI: Majority shareholders planning to buy out minority investors from an unlisted public or private company will now have to deposit 50% of the acquisition price in a separate bank account, according to a February 3 notification by the ministry of corporate affairs (MCA) on amendments to the Companies Act. The notification also stipulated that shareholders with a 75% stake can now make an offer to buy out the remaining shareholders holding 25%.
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Lalit is a corporate commercial, M&A and private equity lawyer with a vast experience of twenty-two years. He has successfully led large and complex transactions for Indian and global corporations.