CMA Final · Corporate and Economic Laws · Compromises, Arrangements and Amalgamations
Under section 234 of the Companies Act, 2013, the Central Government may make rules in connection with mergers and amalgamations between Indian and foreign companies. With whom must it consult?
The Central Government must consult the Reserve Bank of India. The proviso to section 234(1) empowers it to make rules on cross-border mergers and amalgamations in consultation with the RBI.
- ASecurities and Exchange Board of India
- BReserve Bank of IndiaCorrect
- CNational Company Law Tribunal
- DCompetition Commission of India
Explanation
The proviso to section 234(1) says the Central Government may make rules in consultation with the Reserve Bank of India in connection with such mergers and amalgamations. SEBI, NCLT and CCI are not named.
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