Legal quirks: When control overtakes ownership

The Jet-Etihad airline deal has put the spotlight on the C-word. With several definitions of control under different laws, business partners are known to try and get control disproportionate to their level of ownership in a business. The Jet-Etihad deal is an example. Corporate lawyers and investment bankers involved in cross-border merger and acquisition (M&A) deals say lack of uniformity in the definition of control in Indian regulations make foreign investors wary. It also flags issues around corporate governance practices at the board level, say proxy advisory firms.

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