What is Power of Central Government to provide for amalgamation of companies in public interest? Section 237 of Indian Companies Act 2013

Power of Central Government to provide for amalgamation of companies in public interest is defined under Section 237 of Indian Companies Act 2013. Provisions under this Section is:

Section 237 of Indian Companies Act 2013 "Power of Central Government to provide for amalgamation of companies in public interest"

(1) Where the Central Government is satisfied that it is essential in the public interest that two or more companies should amalgamate, the Central Government may, by order notified in the Official Gazette, provide for the amalgamation of those companies into a single company with such constitution, with such property, powers, rights, interests, authorities and privileges, and with such liabilities, duties and obligations, as may be specified in the order.

 

(2) The order under sub-section (1) may also provide for the continuation by or against the transferee company of any legal proceedings pending by or against any transferor company and such consequential, incidental and supplemental provisions as may, in the opinion of the Central Government, be necessary to give effect to the amalgamation.

(3) Every member or creditor, including a debenture holder, of each of the transferor companies before the amalgamation shall have, as nearly as may be, the same interest in or rights against the transferee company as he had in the company of which he was originally a member or creditor, and in case the interest or rights of such member or creditor in or against the transferee company are less than his interest in or rights against the original company, he shall be entitled to compensation to that extent, which shall be assessed by such authority as may be prescribed and every such assessment shall be published in the Official Gazette, and the compensation so assessed shall be paid to the member or creditor concerned by the transferee company.

(4) Any person aggrieved by any assessment of compensation made by the prescribed authority under sub-section (3) may, within a period of thirty days from the date of publication of such assessment in the Official Gazette, prefer an appeal to the Tribunal and thereupon the assessment of the compensation shall be made by the Tribunal.

(5) No order shall be made under this section unless -

(a) a copy of the proposed order has been sent in draft to each of the companies concerned;

(b) the time for preferring an appeal under sub-section (4) has expired, or  where any such appeal has been preferred, the appeal has been finally disposed off; and

(c) the Central Government has considered, and made such modifications, if any, in the draft order as it may deem fit in the light of suggestions and objections which may be received by it from any such company within such period as the Central Government may fix in that behalf, not being less than two months from the date on which the copy aforesaid is received by that company, or from any class of shareholders therein, or from any creditors or any class of creditors thereof.

(6) The copies of every order made under this section shall, as soon as may be after it has been made, be laid before each House of Parliament.

What is Freezing of assets of company on inquiry and investigation? What is Imposition of restrictions upon securities? Section 221 and 222 of Indian Companies Act 2013

What is Inspector’s report? What actions to be taken in pursuance of inspector’s report? Section 223 and 224 of Indian Companies Act 2013

Who will bear Expenses of investigation? Voluntary winding up of company, etc, not to stop investigation proceedings. Section 225 and 226 of Indian Companies Act 2013

Legal advisers and bankers not to disclose certain information and Investigation, etc, of foreign companies.  Section 227 and 228 of Indian Companies Act 2013

What is penalty for furnishing false statement, mutilation, destruction of documents? What is power to compromise or make arrangements with creditors and members?  Section 229 and 230 of Indian Companies Act 2013

What is Power of Tribunal to enforce compromise or arrangement? What is Merger and amalgamation of companies?  Section 231 and 232 of Indian Companies Act 2013

What is Merger or amalgamation of certain companies? What is merger or amalgamation of company with foreign company? Section 233 and 234 of Indian Companies Act 2013

What is Power to acquire shares of shareholders dissenting from scheme or contract approved by majority? Section 235 of Indian Companies Act 2013

What is Purchase of minority shareholding? Section 236 of Indian Companies Act 2013

What is Power of Central Government to provide for amalgamation of companies in public interest? Section 237 of Indian Companies Act 2013

What is Registration of offer of schemes involving transfer of shares? Preservation of books and papers of amalgamated companies, What is the Liability of officers in respect of offences committed prior to merger, amalgamation, etc? Section 238, 239 and 240 of Indian Companies Act 2013

 

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