Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Cross Border Mergers

Kaveri Pharma Ltd (India) plans to merge with Nordic Health AS, incorporated in a country that has not been notified by the Central Government under Section 234(1). Which statement is correct?

Section 234(1) applies the merger Chapter mutatis mutandis only to schemes involving companies incorporated in jurisdictions notified by the Central Government. Since Nordic Health's country is not notified, the sub-section does not cover this scheme, and the claim of universal application is incorrect.

  1. AThe Chapter's provisions apply mutatis mutandis only to companies from notified jurisdictions, so Section 234(1) does not cover this schemeCorrect
  2. BSection 234(1) applies to every foreign country automatically
  3. CThe scheme is valid if RBI alone approves it, regardless of notification
  4. DNotification is needed only for the transferee company

Explanation

Section 234(1) applies the Chapter mutatis mutandis to mergers between Indian-registered companies and companies incorporated in jurisdictions notified by the Central Government. An unnotified country falls outside this sub-section. Hence the claim that it applies to all countries is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Cross Border Mergers shows your real accuracy, how long you take and where you lose marks.

Practise Cross Border MergersFree diagnostic mock

More Cross Border Mergers questions