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CS Professional · Corporate Restructuring, Valuation and Insolvency · Fast Track Mergers

Vikram Engineering Ltd and its wholly-owned subsidiary are preparing a fast track merger. Which step is required of each company involved in the merger under Section 233(1)?

Each company must file a declaration of solvency in the prescribed form with the Registrar of the place of its registered office. This is a condition under Section 233(1)(c). The process does not begin with a Tribunal petition, and the objection notice period is thirty days.

  1. AFiling a declaration of solvency in the prescribed form with the Registrar where its registered office is situatedCorrect
  2. BObtaining a valuation report from the Official Liquidator before issuing notice
  3. CFiling a petition before the Tribunal for directing a meeting of creditors
  4. DPublishing the scheme in two newspapers and waiting sixty days for objections

Explanation

Section 233(1)(c) requires each company to file a declaration of solvency in the prescribed form with the Registrar of its registered office place. The notice for objections is thirty days, not sixty, and no Tribunal petition is needed at this stage.

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