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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Under section 6(2) as amended with effect from 10-9-2024, Tapas Engineering Ltd. and Orion Castings Ltd. have a board-approved merger proposal, and a notice is required. Which statement about the timing of the notice is correct?

Notice may be given after a trigger event, such as board approval of the merger proposal, but before consummation. The earlier thirty-day deadline was replaced by this window with effect from 10-9-2024, so the notice is not tied to a fixed number of days.

  1. ANotice must be given within thirty days of the board approval
  2. BNotice may be given after any of the specified triggers such as board approval, but before consummation of the combinationCorrect
  3. CNotice can be given only after the Commission has passed its order under section 31
  4. DNotice must be given only after the shareholders approve the merger

Explanation

Amended section 6(2) replaced the 'within thirty days' deadline with notice after any of the listed events (board approval of merger, or execution of an agreement or other document) but before consummation. The old thirty-day limit therefore no longer applies. The Commission's order under section 31 comes after the notice, not before.

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