How could the rights of dissenting shareholders to a scheme of merger be resolved?
CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · December 2020
How could the rights of dissenting shareholders to a scheme of merger be resolved?
Answer & Explanation:
The rights of dissenting shareholders can be resolved by resorting to Section 235 of the Companies Act, 2013 in the manner provided under Rule 26 of Companies (Compromise, Arrangement, and Amalgamation) Rules, 2016. If nine-tenths of the shareholders are agreeable to the merger, then the acquiring company can, after serving notice, duly acquire the shares of the dissenting group. The dissenting shareholders need to be served notice in the manner prescribed under Rule 26, which outlines the procedure for compulsory acquisition of shares of dissenting shareholders.
Topics: Companies Act, 2013
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