QUERY REGARDING AS-14

 

CAN ANY ONE EXPLAIN THE DIFFERENCE BETWEEN THE TWO CONDITIONS OF AMALGAMANTION AS PER AS-14

CON 1. SHAREHOLDERS HOLDING NOT LESS THAN 90% OF THE FACE VALUE OF EQUITY SHARES OF THE TRANSFEROR CO. BECOMES SHAREHOLDER OF TRANSFREE CO.

                                                                   AND

CON 2. CONSIDERATION TO THE EQUITY SHAREHOLDERS OF TRANSFEROR CO. IS SATISFIED BY ISSUE OF EQUITY SHARES OF TRANSFREE CO. BUT CASH CAN BE PAID FOR FRACTION SHARES.

Replies (1)

These both conditions are for amalgamation in the nature of merger.

Explanation---

 

1st point-

It means the equity shareholders who hold 90% of the face value of equity shares in the co. which is sold(transferor co) should become shareholders of purchasing Co.

These 90% of shareholders should not hold any shares in purchasing Co. just before amalgamation.

 

2nd point---

Since the co. which is sold has to be compensated by purchasing Co. , So here in this case that selling Co. should be paid in equity shares of purchasing co.only by the purchasing co.

There may be chances when purchase consideration to be satisfied comes like 3247.33 shares. So in such cases 3247 equity shares will be issued and balance .33 fraction shares will be paid in cash by the purchasing Co.

 

Hope you have understood.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details