Section 396 - Power of Central Government to provide for amalgamation of companies in national interest.

Government power to order company amalgamation in public interest permits binding transfer of assets, liabilities, and continuation of proceedings.

Central Government may, in the public interest, order amalgamation of companies by notifying an order specifying the resulting company's constitution, property, powers, rights, interests, privileges and liabilities, and may provide for continuation of pending legal proceedings and consequential provisions. Members and creditors are to retain substantially the same rights post-amalgamation; any shortfall must be compensated as assessed by the prescribed authority, subject to appeal to the Tribunal. Draft orders must be circulated for comment, statutory appeal periods concluded, and orders laid before Parliament.