"Under Companies Act, 1956 small companies were deterred from entering into mergers owing to the lengthy process and the Companies Act, 2013 provided a solution". Comment.

The legal provisions pertaining to merger process stipulated in sections 391-394 of the Companies Act, 1956 was not considered as a simple procedure and there was no special provision for small companies. The process involved, inter alia, drafting a merger scheme, taking judicial approval for the scheme, getting Board and shareholders authorization, etc. Section 233 of the Companies Act, 2013 has introduced the concept of fast track mergers. It carved out an exception from the regular merger procedure. It exempted small companies and holding and subsidiary companies entering into merger arrangements from the regular merger procedure as stipulated under sections 230-232 of the Companies Act, 2013. Section 233 of the Companies Act, 2013 along with Rule 25 of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 lay down the entire legal framework of fast track mergers. Fast track mergers provide the following benefits: Simplified procedure for merger No judicial approval is required Separate procedures for small companies to enable them to expand without any roadblocks Form filings required also significantly reduced Fast track mergers have dispensed with Tribunal approval for mergers. Regional Directors, Registrar of Companies (ROC) and Official Liquidator are the authorities whose approval is required. The process has been simplified to a great extent. A provision allowing the government to notify any other company in this regard has also been made.