P Limited (the company) is a wholly owned subsidiary of Q Limited. The company P Limited wants to make an application for the merger Holding and Subsidiary companies under Section 232 read with Section 230 of the Compani

As per section 233(1) of the Companies Act 2013 , notwithstanding the provisions of section 230 and section 232, a scheme of merger or amalgamation may be entered between: 2 or more small companies or a holding company and its wholly owned subsidiary company or Such other class or classes of companies as prescribed. two or more start-up companies; or one or more start-up company with one or more small company. The provisions given for fast track merger in section 233 of the Act are optional in nature and not a compulsion on the company. Section 233(14) states that a company covered under Section 233 may use the provisions of section 232 for the approval of any scheme for merger or amalgamation. Therefore, with respect to schemes of arrangement or compromise falling within the purview of section 233 of the Companies Act, 2013, the concerned companies may, at their discretion, opt to undertake such schemes under sections 230 to 232 of the Act. Hence, here the opinion of Company Secretary of Q Limited can be said to be not correct and his contention is not valid as per the law. The company shall have an option to choose between normal process of merger under Section 232 read with Section 230 and fast track merger under Section 233.