The Board of directors of MNM Ltd., a small company is considering to merge with BRQ Ltd., another small company. The Board wants the merger to be fast and seeks your opinion about the conditions to be complied in this r

In a Fast Track Merger under section 233 of the Companies Act, 2013 and rules made thereunder, broadly the steps followed are as under: Both the companies need to check their Articles of Association and ensure that they have the requisite authority under them to enter into a merger. If no, the Articles of Association should be amended before the merger can take place. Convene the Board meeting and prepare a draft scheme of merger or amalgamation. Prepare the financial statement of assets and liabilities and get an Auditor's Report prepared. Get the draft scheme approved in the Board meeting. Both the companies need to send a notice to the Registrar of Companies (ROC) and Official Liquidator (OL) of their respective regions inviting suggestions/ objections to the scheme, if any, within 30 days of issuing the notice. Notice to the ROC shall be in Form CAA-9. Both the companies are required to file a declaration of solvency with their respective ROCs. The declaration of solvency shall be accompanied by (a) Board Resolution (b) Statement of Assets and Liabilities and (c) Audit Report. Sending notice for holding shareholders meeting and creditors meeting. Conducting the shareholders meeting and creditors meeting and getting the scheme approved. Filing the results of such meeting with the Regional Director and Official Liquidator by the transferee company.