Procedure for Amalgamation
The amalgamation process involves the following steps:
- Scheme Creation: The merging companies draft a scheme detailing the terms of the amalgamation, such as share exchange ratios and asset transfers.
- Approval Gathering: Shareholders, creditors, and regulatory bodies review and approve the scheme in meetings convened for this purpose.
- Scheme Filing: Once approved, the scheme is filed with the Registrar of Companies and other relevant authorities for their assessment.
- Court Approval (if needed): In certain cases, especially for mergers involving listed companies or contentious issues, court approval may be sought to validate the scheme.
- Execution: After obtaining the necessary approvals, the scheme is executed, involving the transfer of assets, liabilities, and operations according to the agreed terms.
- Post-Amalgamation Compliance: The merged entity ensures compliance with all legal and regulatory requirements, updating records, issuing new shares, and fulfilling any other obligations resulting from the amalgamation.