Management Representation and/or Consultation in relation to
Corporate Transactions
Q1) Whether the company is required to obtain consent
from its employee before amalgamation or merger?
Employees are not entitled to management representation.
However, as the amalgamation/merger is required to be approved by
the court, the court may look into the employees' interest
while approving amalgamation/merger. Further, labour legislations
also provide that in case of transfer of ownership or management of
any undertaking, the workmen of such transferred undertaking shall
be entitled to retrenchment compensation, if their services are
being terminated. Alternatively, they are entitled for no less
beneficial terms and conditions of employment. Workman is entitled
to compensation in case of redundancies.
