Corporate law
Querist :
Anonymous
(Querist) 23 July 2010
This query is : Resolved
Hi All,
While making Merger do we have to get the approval from creditors, Is this compulsory.
Thanks,
Heaven 2011
(Expert) 23 July 2010
Dear Sir,
The matter is entirely upto the discretion of the High court having original jurisdidtion. The merger is absolutely under the scheme of compromise or arrangement within the meaning of the Companies Act, 1956. Where the merger is proposed the High court may (kindly note the word 'may') direct that a meeting between the company and its creditors or member or any clas of them be convened. And if the meeting is convened then 3/4th of them present in person or proxy be counted. However every interested party including the creditors have the legitimate right to object to the HC if it appears to them that the scheme is not working properly.
Regards.
