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

Section 234(1) applies the provisions of the Chapter on compromises, arrangements and amalgamations mutatis mutandis to mergers between Indian companies and foreign companies. Which statement is correct?

Section 234(1) applies the Chapter mutatis mutandis only to mergers with companies incorporated in countries notified by the Central Government, and the Government may frame rules in consultation with the Reserve Bank of India. Notification is the key condition.

  1. AIt applies to companies incorporated in any country without notification
  2. BIt applies only to companies in jurisdictions notified by the Central Government, and Rules may be made in consultation with the RBICorrect
  3. CIt applies only where the foreign company has a place of business in India
  4. DIt applies only if the Indian company is a listed company

Explanation

Section 234(1) covers companies incorporated in jurisdictions of countries notified by the Central Government from time to time, and the proviso lets the Central Government make rules in consultation with the RBI. No listing or place-of-business condition is stated.

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