CS Executive · Setting Up of Business, Industrial and Labour Laws · Business Collaborations
Bharat Auto Components Ltd. plans a merger with its wholly owned subsidiary, Bharat Castings Pvt. Ltd. Which statement correctly reflects the fast-track merger route under the Companies Act, 2013?
Under the fast-track route, a merger of a holding company with its wholly owned subsidiary does not need a full NCLT hearing. Notice goes to the Registrar and Official Liquidator, members and creditors approve the scheme, and the Regional Director confirms it. Board resolution alone is not enough.
- ASuch mergers can be approved without a full NCLT hearing, with the Regional Director confirming the scheme, after notice to the Registrar and Official LiquidatorCorrect
- BSuch mergers need no approval of any authority and take effect on the board resolution alone
- CSuch mergers must always be sanctioned by the Supreme Court
- DSuch mergers are permitted only between two listed companies
Explanation
The fast-track merger route covers holding with wholly owned subsidiary, and small companies. Notice goes to the Registrar and Official Liquidator, members and creditors approve, and the Regional Director confirms the scheme, so no full NCLT hearing is needed. Option B is wrong because approvals are still required.
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