Merger or amalgamation of company with foreign company

(1)

The provisions of this Chapter unless otherwise provided under any other law for the time being in force, shall apply mutatis mutandis to schemes of mergers and amalgamations between companies registered under this Act and companies incorporated in the jurisdictions of such countries as may be notified from time to time by the Central Government:

Proviso

Provided that the Central Government may make rules, in consultation with the Reserve Bank of India, in connection with mergers and amalgamations provided under this section.

(2)

Subject to the provisions of any other law for the time being in force, a foreign company, may with the prior approval of the Reserve Bank of India, merge into a company registered under this Act or vice versa and the terms and conditions of the scheme of merger may provide, among other things, for the payment of consideration to the shareholders of the merging company in cash, or in Depository Receipts, or partly in cash and partly in Depository Receipts, as the case may be, as per the scheme to be drawn up for the purpose.

Explanation

For the purposes of sub-section ( 2 ), the expression “foreign company” means any company or incorporated outside India whether having a place of business in India or not.

body corporate

Notes, amendments & references (2)

Refer rule 25A inserted after rule 25 vide Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2017 dated 13.04.2017. To view the notification, Click Here

(ii) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf