Companies Act, 1956

Section - 394 - Provisions for facilitating reconstruction and amalgamation of companies

Provisions for facilitating reconstruction and amalgamation of companies.

394. (1) Where an application is made to the [Tribunal] under for the sanctioning of a compromise or arrangement proposed between a com-pany and any such persons as are mentioned in that section, and it is shown to the [Tribunal]—

         (a)  that the compromise or arrangement has been proposed for the purposes of, or in connection with, a scheme for the reconstruction of any company or companies, or the amalgamation of any two or more companies; and

         (b)  that under the scheme the whole or any part of the undertaking, property or liabilities of any company concerned in the scheme (in this section referred to as a "transferor company") is to be transferred to another company (in this section referred to as "the transferee company");.... To read the full section download the app from Google Play store