High Court approves Scheme of Arrangement between companies under Companies Act The High Court of Uttarakhand granted sanction to a Scheme of Arrangement between two companies under sections 391 and 394 of the Companies Act, 1956. The ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
High Court approves Scheme of Arrangement between companies under Companies Act
The High Court of Uttarakhand granted sanction to a Scheme of Arrangement between two companies under sections 391 and 394 of the Companies Act, 1956. The Court allowed a joint Company Application, dispensing with equity shareholders' meetings and requiring a creditors' meeting for the transferor-company, which approved the Scheme. Citations were published, and the Regional Director's report confirmed the transfer of employees. A typographical error was rectified, and with no objections, the Court sanctioned the Scheme, directing filing with the Registrar of Companies within six weeks.
Issues: Petition under sections 391 and 394 of the Companies Act, 1956 for sanction to the Scheme of Arrangement between two companies.
Analysis: The judgment involves a petition under sections 391 and 394 of the Companies Act, 1956, seeking sanction for a Scheme of Arrangement between two companies. The registered offices of both the transferor and the transferee companies are within the jurisdiction of the High Court of Uttarakhand. The transferor-company has an authorized share capital of Rs. 10,50,00,000, while the transferee-company has an authorized share capital of Rs. 5,00,000. A joint Company Application was filed and allowed by the Court, dispensing with the need for equity shareholders' meetings but requiring a creditors' meeting for the transferor-company. The creditors' meeting approved the Scheme of Arrangement. Citations were published in newspapers as per Company Court Rules, and notice was issued to the Regional Director, Ministry of Corporate Affairs. The Regional Director's report confirmed the transfer of employees from the transferor to the transferee company without interruption. A typographical error in the Scheme of Arrangement was rectified by the Court. With no legal impediments and no objections received, the Court granted sanction to the Scheme of Arrangement under sections 391 and 394 of the Companies Act, 1956. The order directed the filing of a certified copy with the Registrar of Companies within six weeks, and the company petition was disposed of accordingly.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
