Explain the conditions for an amalgamation in the nature of merger.

An Amalgamation is classified as an 'Amalgamation in the nature of Merger' when all the following five conditions are satisfied - All assets and liabilities of the transferor company become, after amalgamation, the assets, and liabilities of the transferee company. Shareholders holding not less than 90% of the face value of the equity shares of the transferor company (other than the equity shares already held therein, immediately before amalgamation by the transferee company or its subsidiaries or their nominees) become equity shareholders of the transferee company by virtue of amalgamation. The consideration is discharged by the transferee company wholly by the issue of equity shares in the transferee company only, except that cash may be paid in respect of any fractional shares. The business of the transferor company is intended to be carried on, after the amalgamation, by the transferee company. No adjustment is intended to be made to the book value of the assets and liabilities of the transferor company when they are incorporated in the financial statements of the transferee company except to ensure uniformity of accounting policies.