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PART - X
AMALGAMATION
Amalgamation
73. i. Where
two or more companies propose to amalgamate, they shall present
a scheme of amalgamation to the Department for approval.
ii. Before considering
the scheme, the Department shall direct
a meeting of the shareholders of the companies concerned to
be held for approving the scheme.
iii. Where shareholders
holding 50% of the votes in each company
approve the scheme, the Department shall proceed
to consider the scheme including the objections,
if any, from any person interested and pass such orders
as it thinks fit, including orders relating to the following
matters:
a the vesting
of assets and liabilities of the company which is being amalgamated
namely the transferor company in the transferee
company without any further act or deed;
b. issue of
shares by the transferee company to the shareholders of
transferor company; and
c. dissolution of
transferor company without winding up.
iv. The
Royal Government may, in the public
interest, order amalgamation of two or more Government
or Joint Sector companies on such terms and conditions as it thinks
fit.
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