Section - 396 - Companies Act, 1956

Section - 396 - Power of Central Government to provide for amalgamation of companies in national interest

Power of Central Government to provide for amalgamation of companies in national interest.

396. (1) Where the Central Government is satisfied that it is essential in the

[public interest] that two or more companies should amalgamate, then, notwithstanding anything contained in sections

and

but subject to the provisions of this section, the Central Government may, by order notified in the Official Gazette, provide for the amalgamation of those companies into a single company with such constitution; with such property, powers, rights, interests, authorities and privileges; and with such liabilities, duties, and obligations; as may be specified in the order.

(2) The order aforesaid may

[provide for the continuation by or against the transferee company of any legal proceedings pending by or against any transferor company and may also] contain such consequential, incidental and supplemental provisions as may, in the opinion of the Central Government, be necessary to give effect to the amalgamation.

(3) Every member or creditor (including a debenture holder) of each of the companies before the amalgamation shall have, as nearly as may be, the same interest in or rights against the company resulting from the amalgamation as he had in the company of which he was originally a member or credito .... To read the full section download the app from Google Play store