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What is the legal aspect of Merger/Amalgamation?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 rohith asked almost 3 years ago

Hi Friends, I am Rohith. I am studying CA exam. Can I know, What is the legal aspect of Merger/Amalgamation?

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2 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

Section 390 interprets the expressions “company”, "arrangement" and unsecured creditors. Section 391 lays down in detail Power to compromise or make arrangements with creditors and members. Section 392 explains Power of Tribunal to enforce compromise and arrangement. Section 393 lays down Information as to compromises or arrangement that is to be sent with every notice calling a meeting of creditors and members.

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Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered almost 3 years ago

Companies Act, 1956 has provided for a set of provisions specially dealing with amalgamation of companies, to facilitate the transactions. The statutory provisions relating to Merger and Amalgamation are contained in Sections 390 to 396A. ------------------------------------------------------------------------ - Section 390 interprets the expressions “company”, "arrangement" and unsecured creditors. - Section 391 lays down in detail Power to compromise or make arrangements with creditors and members. - Section 392 explains Power of Tribunal to enforce compromise and arrangement. - Section 393 lays down Information as to compromises or arrangement that is to be sent with every notice calling a meeting of creditors and members. - Section 394 explains Provisions for facilitating reconstruction and amalgamation of companies. - Section 394A lays down Notice to be given to Central Government for applications under sections 391 and 394. - Section 395 depicts Power and duty to acquire shares of shareholders dissenting from scheme or contract approved by majority. - Section 396 lays down Power of Central Government to provide for amalgamation of companies in national interest. - Section 396A lays down Preservation of books and papers of amalgamated company.

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