The Institute of Chartered Accountants of India ( ICAI )’s Committee for Aggregation of CA Firms ( CACAF ) is seeking public feedback on proposed amendments to Merger & Demerger Guidelines for Chartered Accountant ( CA ) firms.
The CACAF aims to modernize the Merger & Demerger Rules implemented in 2005 to adapt to the evolving business and professional landscape.
Demerger Time Limit Removal – The proposed guidelines aim to remove the 5-year restriction on demerging firms regaining their original pre-merger trade name.
The question for the respondents is as follows:
“Do you agree with removal of the time limit of 5 years within which the firm can demerge and obtain the original trade/firm name of its erstwhile firm made in chapter 4 point 5 (viii) and (iv) of the proposed Merger & Demerger Guidelines? If not, why?”
Stakeholders can submit their comments on the draft by June 6th, 2024, through a web form, email, or by scanning the QR code.
This move by the CACAF offers greater flexibility for CA firms considering mergers and demergers. The ability to reclaim their original brand name after a demerger could incentivize strategic partnerships and restructuring within the CA profession.
For Chartered Accountants and CA firms in India, this is a significant development. It is recommended to review the exposure draft ([link to exposure draft ON The Institute of Chartered Accountants of India icai.org]) and submit your comments to the CACAF before the deadline.
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