Amalgamation
This query is : Resolved
gauri gupta
(Querist)
29 September 2011
Is the procedure of a subsidiary company's merger with its holding company different from normal amalgamation procedure u/s 391-394.If yes, kindly tell me tha same. What are the main differences to be taken care of? How to find out Share exchange ration if holding co. having 71% of share capital of its subsidiary?
CS Suraj Arora
(Expert)
29 September 2011
Dear Gauri
Please take note that the procedure for Amalgamation betweetn holding company and subsidiary company is not different as prescribed in section 391-394 of the Companies Act 1956.
second there will be a clause in the scheme that the cross shareholding will be cancelled means shares held by holding company in the subsidiary company will be cancelled and shares willbe issued only to other sharehiolders.
share exchange ratio will be arrived as usaual with NAV and profit earning capicity of the company.
Please take note that the procedure for Amalgamation betweetn holding company and subsidiary company is not different as prescribed in section 391-394 of the Companies Act 1956.
second there will be a clause in the scheme that the cross shareholding will be cancelled means shares held by holding company in the subsidiary company will be cancelled and shares willbe issued only to other sharehiolders.
share exchange ratio will be arrived as usaual with NAV and profit earning capicity of the company.
gauri gupta
(Querist)
30 September 2011
Thank u sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- Nursery business
- TDS on Dashcam rent and allied services
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Working on Gold wastage during Melting of old gold jewellery
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Section 269ST applicability for capital introduced by partner to his partnership firm
- Intimation under section 245
- ETDS return q4 25-26
- Royalty payments to the Mining Department for procurement of murum - GST input
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
