Interdependency and need for growth have encouraged Indian business entities to opt for an easy tool of development. Mergers and Acquisitions (M&As) are one of those simplified modes inserted in the Companies Act, 1956. Though the piece of legislation on this subject has been amended from time to time and more significance has been attached to this scheme, the courts have always been flooded with lawsuits. Moreover, the scheme of restructuring has gained tremendous significance in this competitive environment. The Companies Act, 2013 has elaborated the legal aspects of the scheme. In spite of specific provisions of M&As and its significance, there is no conceptual clarity on these transactions in any legal literature. The concepts are technical in nature and vary with the transactions. Most of these terms lack statutory definitions. While these terms express identical understanding of the transactions, each varies from another. Thus, these concepts need to be explained and understood before any analysis of the legal framework regulating M&As in India. The activities of mergers start from restructuring of share capital to the closing down of the industries. It is essential to understand the meaning, scope and application of these terms. Therefore, this paper analyzes the various terms with reference to M&A activities in the light of literature and judicial opinion, besides examining the dilemma in the conceptual framework of M&As in the Indian legal context.

There are various terminologies associated with Mergers and Acquisitions (M&As) under the Companies Act. Some fundamental concepts have been analyzed in this paper which are as follows:

Restructuring

The M&A activities start with the restructuring process. To analyze the meaning of restructuring, it is essential to know the meaning of structure. The word structure used in an economic context implies a specific, stable relationship among the key elements of a particular function or process. It expresses the framework under which institutions function in their day-to-day operations and their pursuit for better economic performance.

With reference to this meaning of structure, restructuring is the changes made to the structure of a company. These changes are made with an objective to achieve growth in the long run. These changes are of two types: macroeconomic and microeconomic. If the changes are related to national economy, it is macroeconomic restructuring, and if the changes are related to the structure of the company or enterprises it is microeconomic restructuring. Thus, the process of restructuring is always connected with the changes in the existing structure of the company or the economy.

Law Review Journal, Mergers and Acquisitions (M&As), Dilemma, Conceptual Framework, Corporate Restructuring, Arrangement, Compromise, Mergers, Acquisitions, India.