Pursuant to scheme of amalgamation, if equity shares are issued to preference shareholders in lieu of their holding in amalgamating co, whether conditions laid down in section 2(1B) gets satisfied.
Renu Agarwal (advisor) 29 August 2009
Pursuant to scheme of amalgamation, if equity shares are issued to preference shareholders in lieu of their holding in amalgamating co, whether conditions laid down in section 2(1B) gets satisfied.
A V Vishal (Advocate) 29 August 2009
Dear Renu
Please clarify under what law you are asking your query, just by quoting as section 2(1B), what should be inferred. Please ask your query clearly.
Sivadas Chettur (Chartered accountant) 27 September 2009
I presume that before amalgamation there was a liability in the balance sheet of the amalgamationg company towards preference shares. One of the conditions in 2(1B) is that all the liabilities of the amalgamating co should become the liabilities of the amalgamted co. I think it will not be possible for you to satisfy that condition. Anyway if you can elaborate a little more about the factual situation probably a good legal analysis can be made resorting to the process of interpretation.
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