CORPORATE LAW- PROJECT SYNOPSIS

POSITION OF EMPLOYEES DURING MERGERS, ACQUISITIONS, AMALGAMATIONS AND

LIQUIDATION OF COMPANIES- A STUDY IN THE INDIAN CONTEXT

Introduction:-

In the quest for expansion companies undertake mergers, acquisitions and amalgamations where
major changes takes place. When a relatively larger company absorbs a target company, and
becomes the new owner it is called acquisitions, while when two or more large business entities
of the relatively same size combine to form a new entity it’s called as a merger. Amalgamation is
similar to merger, and involves two companies in the same line of business unifying into a single
entity, while liquidation means bringing a business entity to an end and is usually because of
insolvency. The one common element between all these events is that they affect the employees
of the respective companies because such events are often connected with laying off,
retrenchment and loss of pay for them.

The rights of employees are often ignored, and it also has to be considered that in most of these
situations, the employees do not have a say on such company decisions though it ends up
affecting them a lot. The discipline of labor law which seeks to protect employees will have to be
taken into accord for evaluating the various available provisions in laws, and whether these are
sufficient or not. Since the Indian context has been taken, the provisions of the companies Act,
The Insolvency and Bankruptcy Code, Industrial Disputes Act, Trade Unions Act and other
relevant statutes have to be analyzed apart from any judicial decisions on this field. The main
aim is to ascertain the rights of employees during the aforementioned scenarios, analyze if they
are sufficient and to provide solutions if any.

Research Problem:-

Do the Indian laws speak about the rights of employees during mergers, acquisitions,
amalgamations and liquidations? If so, are they sufficient and what changes can be brought in?

Scope and Limitation:-

The scope of the study is relatively wide because there is the space to provide solutions because
there is a high probability of few lacunas in the law regarding the area of study. The limitation is
that only secondary sources of data is available and there has not been any specialized legislation
dealing with or explicitly talking about employee rights during such situations to infer and
criticize from.

Thank You.

Submitted By:

H. Abhinav Srinivasan

(BC0180003)