TMI BlogAMALGAMATION OF GOVERNMENT COMPANIES. Simplified Procedure for amalgamation of Government Companies U/s 396 of the Companies Act, 1956.X X X X Extracts X X X X X X X X Extracts X X X X ..... Government Companies in the Public Interest under section 396 of the Companies Act, 1956 by following the procedures prescribed under Companies (Court) Rules, 1959 which are applicable to amalgamation under Sections 391 - 394 of the Companies Act, 1956 . Without prejudice to the generality of Section 396 , it has now been decided that, in appropriate cases, simpler procedures shall be adopted for the amalgamation of Government Companies under section 396 of the Companies Act, 1956 as given below :- (1) (a) Every Central Government Company which is applying to the Central Government for amalgamation with any other Government Company or Companies under the simplified procedure prescribed in this circular, shall obtain ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n received and the company certifies that there is no objection from any other creditor. (6) The resolutions passed by the transferor and transferee companies along with written confirmation of the Cabinet decision referred to in para (i) shall then be submitted to the Central Government which shall, if it is satisfied that all the requirements of Section 396 and of this circular, have been fulfilled, order by notification in the Gazette that the said amalgamation shall take effect. (7) The order of the Central Government shall provide:- (a) for the transfer to the transferee company of the whole or any part of the undertaking, property or liabilities of any transferor company (b) that the amalgamation of companies under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase to exist as a corporate body. (12) The amalgamation of companies under the foregoing sub-sections shall not in any manner whatsoever affect the pre-existing rights or obligations, and any legal proceedings that might have been continued or commenced by or against any erstwhile company before the amalgamation, may be continued or commenced by, or against, the concerned resulting company, or transferee company, as the case may be. (13) The Registrar shall strike off the names of every Government Company deemed to have been dissolved under sub-sections (10) to (11). (14) Nothing in this Circular shall prevent government companies from applying for amalgamation before the Central Government under Sections 391 - 394 of the Companies ..... X X X X Extracts X X X X X X X X Extracts X X X X
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