Merger & Amalgamation
P.C. Joshi
(Querist) 09 October 2009
This query is : Resolved
Dear Friends,
In a group there are two pvt. ltd. investment companies and a listed company(70% holding with promoters). The paid up capital of both the investment companeis is 30 lacs and 50 lacs respectively. these companies are not doing any activity since long time. hence, the promoters wish to dispose of them in a manner which may include merger of the two companies, merger of two companies with listed company or by winding up of these two companies.
I am of the view that the management should amalgamate these two companies with listed company, which will have financial benefit like taxation relief, enhancement of authorise capital w/o fee being paid to ROC.
Can anyone suggest in this case which option will be more beneficial from proceduraial as well as financial point of view.
Pls let me have a checklist of amalgamation, merger if someone has it.
Regards
P.C. Joshipcj_acs
Expert eMind !
Posts: 332
Joined: Mon Jul 09, 2007 9:21 am
Location: Delhi Top
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Guest
(Expert) 18 December 2009
Your opinion is right and I don't think that there is some other option. Resorting to winding-up is risky and tend to pose many problems. Since, the companies are not sick and the intention behind merger is good, I do feel as you feel that merger is beneficial.
