COMPANIES ACT 1956 Vs. AMALGAMATION OF SHAILY

JUDGEMENT

(1.) THE petitioner company, being transferee company, Anmol Trading Company Ltd. , seeks sanction of the Scheme of Amalgamation under sections 391 and 394 of the Companies Act, 1956 with the transferror companies. The amalgamation is intended for better rationalisation in respect of manufacture of products and business, the assets and properties of the petitioner company and each of the transferor companies to be put to better use and considerable economy with a view to increase the productivity and profitability of the combined unit to the advantage of the companys shareholders and the creditors.

(2.) IT appears that the petitioner company took out a summons for direction being Company Application No. 228 of 2002 and by an order dated 19th April, 2002, the convening and holding of the meetings of the shareholders, members and creditors was dispensed with.

(3.) IT further appears that the transferor companies have also taken out a summons for direction in the High Court at Gujarat and orders in respect of the applications filed were passed by that Court.