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

Section 234(1) applies the Chapter on compromises, arrangements and amalgamations mutatis mutandis to schemes between Indian companies and companies incorporated in certain jurisdictions. Zenith Ltd proposes a scheme with a company in Country X. Which fact most directly determines whether Section 234(1) can be invoked?

What matters is whether Country X has been notified by the Central Government. Section 234(1) applies the merger Chapter mutatis mutandis only to companies incorporated in jurisdictions of countries notified from time to time.

  1. AWhether Country X has been notified by the Central Government from time to timeCorrect
  2. BWhether Country X is a member of the United Nations
  3. CWhether the foreign company has a branch office in India
  4. DWhether the foreign company is listed on an Indian stock exchange

Explanation

Section 234(1) covers companies incorporated in the jurisdictions of such countries as may be notified by the Central Government. Branch office or listing in India is not the test.

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