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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Kaveri Motors Ltd signs a share purchase agreement to acquire control of Narmada Components Pvt Ltd. For purposes of the notice under Section 6(2), which event allows the filing to be made, as per the Act?

The notice can be filed after the agreement or other document for the acquisition is executed, and it must be filed before consummation. Completion of the share transfer is too late, and the 150-day period and section 31 order concern when the combination takes effect.

  1. AOnly the completion of transfer of shares
  2. BExecution of the agreement or other document for the acquisition, before consummationCorrect
  3. COnly an order of the Commission under section 31
  4. DOnly the passing of one hundred and fifty days

Explanation

Section 6(2)(b) lists execution of any agreement or other document for the acquisition, or acquiring of control, as a trigger for notice, before consummation. Completion of transfer would be consummation, which is too late. The 150 days and section 31 order relate to when the combination may take effect, not the filing trigger.

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