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CS Professional · Corporate Restructuring, Valuation and Insolvency · Documentation - Merger and Amalgamation

Mahanadi Steel Ltd's last annual accounts relate to the year ended 31 March. The first meeting of its members to approve a merger scheme is summoned for 15 November of the same year. A valuation report and a draft scheme are ready. What additional document must be circulated for that meeting under section 232(2)?

A supplementary accounting statement must be circulated. The last annual accounts ended on 31 March, which is more than six months before the 15 November meeting, so section 232(2)(e) applies. The valuation report and draft scheme alone do not satisfy the requirement.

  1. AA supplementary accounting statement, because the last annual accounts relate to a year ending more than six months before the first meetingCorrect
  2. BNo further document, because valuation report and draft scheme suffice
  3. CA fresh valuation report from a second valuer
  4. DA statement of the Registrar approving the accounts

Explanation

The year ended 31 March, and 15 November is more than six months later (about seven and a half months). Section 232(2)(e) therefore requires a supplementary accounting statement. A second valuer and Registrar approval are not required by that provision.

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