Obtaining approval of creditors before merger. What does creditor means ( whether all creditor including short term and long term)? If only long term whether it includes debt and loan from bank.
The creditors are divided into appropriate classes to achieve at settlement and each classes consent to scheme is obtained. The consent Letter required to be given by Creditors (Secured / Unsecured) along with the Board Resolution (in case creditors is body corporate) as their consent to approve the scheme of amalgamation and to dispense with the meeting of the Creditors, in case they have no objection for the merger.
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