Demerger Regulations in India


“Demerger” can be defined as the division or division of a company into multiple companies. New, transferable companies do not have to be parental corporations that have been split or disbanded. The New Oxford Dictionary defines “demerger” as “to divide a large company into two or more entities.”Justice NV Balasubramanam noted that the Dismissal Scheme is a corporate partnership in two or more areas, thus retaining some of it and transferring the rest to the company or companies to which it has led. It is a business plan. The term ‘demerger’ is not defined in the Companies Act, 1956.

Authored by Rupa Paul, Amity University, Kolkata.