Section 394 - Provisions for facilitating reconstruction and amalgamation of companies.

Company reconstruction and amalgamation: orders may transfer undertakings and vest liabilities in the transferee, requiring certified filing.

Section 394 permits the Tribunal, when sanctioning a compromise or arrangement for reconstruction or amalgamation, to order transfer of the whole or part of a transferor company's undertaking, property or liabilities to a transferee company; to provide for allotment of interests by the transferee; continuation of proceedings; dissolution without winding up; provision for dissenting persons; and incidental matters. Orders vest transferred property and liabilities in the transferee, require filing a certified copy with the Registrar within thirty days, and impose penalties for default; certain amalgamations and dissolution orders require Registrar or Official Liquidator reports.