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Nachiket posted an Question
May 14, 2020 • 15:28 pm 30 points
  • UGC NET
  • Commerce

31. in amalgamation if nature of merger which statement is not true? (a) (b) (c) all the assets and liabilities of the transferer company become, after amalgama

31. In amalgamation if nature of merger which statement is not true? (A) (B) (C) All the assets and liabilities of the transferer company become, after amalgamation, the assets and liabilities of transferee company. Share holders holding not more than 90% of the equity shares of the transferer company become equity shareholders of the transferee company be virtue of the amalgamation. The business of the transferee company is intended to be carried on, after the amalgamation by the transferee company None of these (D)

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    Rishab Soni best-answer

    in simple terms, the condition is that the shareholders must hold "more" than 90% of the face value of equity share in the transferer company. But the option says "less" than 90%. so it can be false

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    Rishab Soni best-answer

    I think Statement B is false as it says Shareholders holding "not more than 90%" of the equity share of transferer company become the shareholders of the transferee company. Whereas the actual condition is shareholders must hold at least 90% or more of the face value of equity share in transferer company to become equity shareholders of transferee company by virtue of amalgamation in nature of merger. That is to say, Shareholders must be holding "not less than 90%" of the equity share for the condition to be satisfied to become equity shareholders of transferee company. Hope that helps.

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