Section 237 - Power of Central Government to provide for amalgamation of companies in public interest

Government power to order amalgamation in public interest with continuation of proceedings and compensation rights with Tribunal appeal.

Central Government may, by notified order, provide for amalgamation of two or more companies in the public interest into a single transferee company with specified constitution, rights, liabilities and powers; the order may provide for continuation of pending legal proceedings. Members and creditors are to retain substantially the same interests or be paid compensation assessed by the prescribed authority and published in the Official Gazette, with an appeal against such assessment to the Tribunal within the statutory period. Orders require prior draft circulation, completion of appeal and consultation steps and must be laid before Parliament.