Podcast
Questions and Answers
What is the minimum percentage of shareholders required to become shareholders of the amalgamated company?
What is the minimum percentage of shareholders required to become shareholders of the amalgamated company?
- Four-fifths
- Two-thirds
- Three-fourths (correct)
- One-third
What happens to the liabilities of the amalgamating company or companies after the amalgamation?
What happens to the liabilities of the amalgamating company or companies after the amalgamation?
- They become the liabilities of the amalgamated company (correct)
- They are distributed among the shareholders
- They are waived off
- They are transferred to a third-party company
What is the term for the company or companies that merge with another company?
What is the term for the company or companies that merge with another company?
- Amalgamating company (correct)
- Amalgamated company
- Merged company
- Merger company
What is the result of the amalgamation of two or more companies?
What is the result of the amalgamation of two or more companies?
What happens to the property of the amalgamating company or companies after the amalgamation?
What happens to the property of the amalgamating company or companies after the amalgamation?
What is the condition for the amalgamation of companies?
What is the condition for the amalgamation of companies?
What is required for a foreign company to merge with an Indian company?
What is required for a foreign company to merge with an Indian company?
Which section of the Companies Act, 2013 deals with the merger of a foreign company with an Indian company?
Which section of the Companies Act, 2013 deals with the merger of a foreign company with an Indian company?
What type of merger occurs when a foreign company merges with an Indian company resulting in an Indian company being formed?
What type of merger occurs when a foreign company merges with an Indian company resulting in an Indian company being formed?
In an inbound merger, who can conduct the valuation of the transferee company?
In an inbound merger, who can conduct the valuation of the transferee company?
What regulations govern the transfer of securities in an inbound merger?
What regulations govern the transfer of securities in an inbound merger?
What is the result of an inbound merger?
What is the result of an inbound merger?
What is the regulation that guides the establishment of a branch office or a liaison office in India?
What is the regulation that guides the establishment of a branch office or a liaison office in India?
What is the timeframe for selling assets that cannot be acquired or held by the resultant company?
What is the timeframe for selling assets that cannot be acquired or held by the resultant company?
What is the purpose of the Special Non-Resident Rupee Account in a outbound merger?
What is the purpose of the Special Non-Resident Rupee Account in a outbound merger?
Which Act applies to schemes of mergers and amalgamations between companies registered under this Act and companies incorporated in notified jurisdictions?
Which Act applies to schemes of mergers and amalgamations between companies registered under this Act and companies incorporated in notified jurisdictions?
Who can notify the jurisdictions of countries for the purpose of mergers and amalgamations?
Who can notify the jurisdictions of countries for the purpose of mergers and amalgamations?
With which organization must the Central Government consult to make rules for mergers and amalgamations?
With which organization must the Central Government consult to make rules for mergers and amalgamations?
What is the required prior approval for a foreign company to merge with an Indian company?
What is the required prior approval for a foreign company to merge with an Indian company?
With which company can an Indian company merge according to Annexure B of the Companies Amalgamation Rules?
With which company can an Indian company merge according to Annexure B of the Companies Amalgamation Rules?
What is the name given to the company that takes over the assets and liabilities of the companies involved in a cross-border merger?
What is the name given to the company that takes over the assets and liabilities of the companies involved in a cross-border merger?
What is the requirement for valuation in a cross-border merger?
What is the requirement for valuation in a cross-border merger?
What is the purpose of Rule 25A of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016?
What is the purpose of Rule 25A of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016?
What sections of the Act must be complied with for a cross-border merger?
What sections of the Act must be complied with for a cross-border merger?
What is a significant benefit of cross border mergers for companies seeking to expand globally?
What is a significant benefit of cross border mergers for companies seeking to expand globally?
How do cross border mergers enable companies to achieve cost effectiveness?
How do cross border mergers enable companies to achieve cost effectiveness?
What is a key advantage of cross border mergers in terms of technological advancement?
What is a key advantage of cross border mergers in terms of technological advancement?
What is a primary benefit of cross border mergers in terms of distribution?
What is a primary benefit of cross border mergers in terms of distribution?
What is a key driver of the trend of cross border mergers?
What is a key driver of the trend of cross border mergers?
What is a benefit of cross border mergers for a foreign collaborator?
What is a benefit of cross border mergers for a foreign collaborator?
Study Notes
Benefits of Cross Border Mergers
- Diversification: enables companies to diversify products and geographically
- Cost effectiveness: achieves cost savings by utilizing existing infrastructure and resources in the new market
- Technological advancement: enables companies to use each other's intellectual properties
- Efficient distribution: creates a large distribution network transcending national boundaries
Risks Associated with Cross Border Mergers
- No specific risks mentioned in the text
Tax Implications
- Section 2(1B) of the Income Tax Act, 1961 defines the term 'amalgamation' and its implications
Regulatory Landscape
- Rule 25A of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016: outlines the process for merger or amalgamation of a foreign company with an Indian company and vice versa
- Section 234 of Companies Act, 2013: applies to schemes of mergers and amalgamations between companies registered under this Act and companies incorporated in notified countries
Inbound Merger
- A foreign company merges with an Indian company, resulting in an Indian company being formed
- Key regulations to be followed:
- Transfer of securities
- Branch office
- Other changes, such as repayment of borrowings, sale of assets, and opening of Special Non-Resident Rupee Account
Outbound Merger
- No specific information mentioned in the text
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Description
Test your understanding of the Income Tax Act, 1961, Section 2(1B), which defines the term 'amalgamation' in relation to companies. Learn about the merger of companies and the resulting amalgamated company. Evaluate your knowledge of this important concept in taxation.
