In the case of demeger resulting company has been incorporated.
Appointed date of demerger is 1st April 2020
Application will be filed before NCLT in first week of May 2020 after preparing Balance sheet as on 31st March 2020
My query is that can a resulting company commenced operation on the strength of application filed or have to wait till the sanction is passed by NCLT
Resulting Company Must Wait for NCLT Approval Before Starting Operations Post-Demerger Application Filing A private limited company is undergoing a demerger, with the resulting company already incorporated. The appointed date for the demerger is April 1, 2020. An application will be filed with the National Company Law Tribunal (NCLT) in early May 2020 after preparing the balance sheet as of March 31, 2020. The query raised concerns whether the resulting company can begin operations based on the filed application or must wait for NCLT's sanction. The response provided by a participant suggests that the resulting company must wait for NCLT's approval before commencing operations. (AI Summary)
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