Company C, by operation of law, acquires all assets, rights and contracts of Company A and Company B, and becomes automatically liable for their debts, liabilities and other obligations. Under the Companies Act, 2013, ... amalgamation was taken for stake holders. CHAPTER - II APPROVAL BY BOARD OF DIRECTORS. Section 391, which also governed other mergers and like any other merger, it was carried out through the process of obtaining approval from a High Court. TRUE: 3,4,5,6,7,8,9 FALSE: 1,2,10 Multiple Choice Questions 1. Voluntary Amalgamation of Banking Companies: Merger between two private sector banking companies is governed by Section 44A of the Banking Regulation Act, 1949. The statutory merger is governed in terms of section 113 and section 116 of the Companies Act and the merger agreement is a mandatory requirement in terms of section 113(2). Amalgamation of one banking company with another banking company is governed by the provisions of Banking Regulation Act, 1949. Voluntary amalgamation of a NBFC with a banking company is governed by sections 232 to 234 of the Companies Act, 2013 in terms of which, the scheme of amalgamation has to be approved by the Tribunal 1. Section 44A of the Banking Regulation Act, 1949 provides for the procedure for amalgamation of banking companies. Assuming that, the amalgamation is effective from 1.4.2018, the amalgamated company is in position to take business loss benefit from AY 2011-12 amounting to Rs. When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as ..... (A) Amalgamation (B) Absorption • Merger or amalgamation between companies (other than wholly-owned subsidiary and small companies) (Section 232) • Merger or amalgamation of a company with wholly- ... governed by the provisions of Section 230 and 232 of the 2013 Act. An amalgamation of two banking companies increases their resources, thereby resulting in increased lending capacity. 6. Amalgamation includes combining the assets and liabilities of the two banking amalgamating companies into one amalgamated company while also swapping shares based on their market value. An amalgamation is a process by which two or more cooperatives governed by the Coop Act (“amalgamating cooperatives”) merge and carry on as one cooperative (“amalgamated cooperative”). 28,00,00,000. Amalgamation of companies is governed by AS 13. Certain key provisions on amalgamations, mergers and demergers became effective on the day of the publication of the amendment –8 November 2017 – so it is probable that your amalgamation, merger or demerger will be governed by the new rules introduced by the amendment to the Commercial Code. A company can restructure its arrangements 10. It requires companies to make application to the court under section 391, which empowers the court to sanction the compromise or arrangement proposed by the companies. Mergers, Amalgamation and Demergers of Companies under the Companies Act 1956 are governed by sections 391 to 396 Companies Act 1956. The amalgamating corporations fuse together as Company C. An amalgamation is governed by the incorporating jurisdiction of the amalgamating corporations. Banking Companies (Second) Amendment Bill,1960 proposed for the introduction of Section 45 and Section 44A (7) to the Banking Regulation Act,1949. Companies Act, 2013 allows merger of Indian companies also into foreign companies subject to checks and balances as laid down. There are two ways to amalgamate under the Coop Act: