Write a note on the procedure adopted by the government when amalgamation of government companies is in public interest.

The Ministry of Corporate Affairs (MCA) have been dealing with the amalgamation of Government Companies in the Public Interest under section 396 of the Companies Act, 1956 by following the procedures prescribed under Companies (Court) Rules, 1959 which are applicable to amalgamation under Sections 391-394 of the Companies Act, 1956. Without prejudice to the generality of Section 396, it has now been decided that, in appropriate cases, simpler procedures shall be adopted for the amalgamation of Government Companies under section 396 of the Companies Act, 1956 as given below:- Every Central Government Company which is applying to the Central Government for amalgamation with any other Government Company or Companies under the simplified prescribed procedure, shall obtain approval of the Cabinet i.e. Union Council of Ministers to the effect that the proposed amalgamation is essential in the 'public interest'. In the case of State government companies, the approval of the State Council of Ministers would be required. Where both central and state government companies are involved, approval of both State Cabinet(s) and Central Cabinet shall be necessary. A Government Company may, by a resolution passed at its general meeting decide to amalgamate with any other Government Company, which agrees to such transfer by a resolution passed at its general meeting; Any two or more Government Companies may, by a resolution passed at any general meetings of its Members, decide to amalgamate and with a new Government Company. Every resolution of a Government Company under this section shall be passed at its general meeting by members holding 100% of the voting power and such resolution shall contain all particulars of the assets and liabilities of amalgamating government companies. Before passing a resolution under this section, the Government Company shall give notice thereof of not less than 30 days in writing together with a copy of the proposed resolution to all the Members and creditors. A resolution passed by a Government Company under this section shall not take effect until (i) the assent of all creditors has been obtained, or (ii) the assent of 90% of the creditors by value has been received and the company certifies that there is no objection from any other creditor. The resolutions passed by the transferor and transferee companies along with written confirmation of the Cabinet decision shall then be submitted to the Central Government which shall, if it is satisfied that all the requirements of Section 396 and the circular issued by MCA on this behalf have been fulfilled, order by notification in the Gazette that the said amalgamation shall take effect.