Whether both transferor company and transferee company should move High Court for direction where companies involved in amalgamation are incorporated in different States

Companies in Different States Must Seek High Court Approval for Amalgamation u/s 394 of Companies Act.

In cases of amalgamation where the transferor and transferee companies are incorporated in different states, both companies should seek directions from their respective High Courts. This requirement is based on legal precedents indicating that both companies must apply under section 394 of the Companies Act, as the rights of members or creditors may be affected. If both companies are in the same state, only one company needs to move the court, but it should include the other company as a party to the petition. This ensures that the interests of both companies are adequately represented and aligned.