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CMA Final · Corporate and Economic Laws · Compromises, Arrangements and Amalgamations

Section 234(1) applies the Chapter on compromises, arrangements and amalgamations mutatis mutandis to schemes between Indian-registered companies and companies incorporated in certain foreign jurisdictions. Which jurisdictions are covered?

The covered jurisdictions are countries notified from time to time by the Central Government. Section 234(1) applies the Chapter mutatis mutandis to schemes with companies incorporated in those notified countries. RBI is consulted on rules and approves mergers, but it does not notify the countries.

  1. AAll countries without exception
  2. BOnly countries that are members of the Commonwealth
  3. CCountries notified from time to time by the Central GovernmentCorrect
  4. DCountries approved by the Reserve Bank of India in each case

Explanation

Section 234(1) covers companies incorporated in the jurisdictions of such countries as may be notified from time to time by the Central Government. The RBI is consulted on rules and gives approval under sub-section (2), but it does not define the covered countries. Commonwealth membership is irrelevant.

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