Ch 4 · M&A + AFM + Tax Integration

⭐ Important points (exam-critical)

• ⭐Sec 2(1B) merger: all assets/liabilities transferred + shareholders holding ≥ 75% become shareholders of amalgamated co.
• ⭐Demerger Sec 2(19AA): resulting co issues shares pro-rata; book values retained.
• ⭐Stamp duty often paid in state where assets are located — significant for asset transfers.
• ⭐Buy-back tax (Sec 115QA) makes share buyback unattractive vs dividend (post-2020).