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The provisions of the Act also deal with compromise or arrangement within or without amalgamation or merger.
Presently, the High Court enjoys powers of sanctioning amalgamation matters under section 394 of the Act though it is a matter of time when this power will be exercised by National Company Law Tribunal, a forum where Chartered Accountants shall be authorized to appear.
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The court can order an amalgamation of the Indian undertaking of a foreign company with an Indian Company.
COMPROMISE AND ARRANGEMENT ‘Compromise’ is an expression which implies the existence of a dispute such as relating to rights, which it seeks to settle.
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Whereas Merger means the combining of two or more entities into one, through a purchase acquisition or a pooling of interests.
Differs from a consolidation in that no new entity is created from a merger The terms merger and amalgamation have not been defined in the Companies Act, 1956 (hereinafter referred to as the Act) though this voluminous piece of legislation contains 69 definitions in Section 2.
Thereafter, within seven days of filing the report, the applicant shall present a petition to the court for confirmation of compromise or arrangement.
Where Company fails to make the application, a creditor or contributor may make the application.
The due diligence process makes the journey see the light at the end of the tunnel – the light of wisdom to amalgamate or not.Tags: Adult Dating, affair dating, sex dating