Level 1: CA Final Law – Part I – Sec A – Chapter 5 – Compromises, Arrangements and Amalgamations MCQs

____ means a peaceful or willing settlement of a dispute by mutual adjustments and concessions.

In which of the following there is no dispute, but it modifies rights

Methods of accounting for amalgamations in the nature of merger is known as _______

Methods of accounting for amalgamations in the nature of Purchase is known as ______

A compromise or arrangement can be made between __________

ABHI Limited is a wholly owned subsidiary company of ETERNAL Limited. ETERNAL Ltd., makes an application for merger of Holding and Subsidiary Companies under the section 232 of the Companies Act, 2013. The Company Secretary of the ETERNAL Ltd., states that company cannot apply for merger under section 232 of the said Act. In fact said that the company shall have to apply for merger as per section 233 i.e. Fast Track Merger. State the correct statement in terms of the validity of the difference in the opinion of the Company secretary.

Where a meeting is proposed to be called in pursuance of an order of the Tribunal, a notice of such meeting shall be sent to
a) all the creditors or class of creditors
b) to all the members or class of members
c) and the debenture-holders of the company,
d) Sectoral regulators u/s 230(5)

A notice under section 230 shall provide that the persons to whom the notice is sent may vote in the meeting either themselves or through proxies or by postal ballot to the adoption of the compromise or arrangement within _____from the date of receipt of such notice.

Objection to the compromise or arrangement shall be made only by persons holding not less than ____ per cent of the shareholding

Objection to the compromise or arrangement shall be made only by persons having outstanding debt amounting to not less than ____ per cent of the total outstanding debt

The order of the Tribunal shall be filed with the Registrar by the company within a period of ____ days of the receipt of the order.

Compromise or arrangement in respect of any buy-back of securities shall be sanctioned by the Tribunal only in accordance with the provisions of section __

If the transferor company is a listed company and the transferee company is an unlisted company, then _______.

Which amongst the following is a restriction on transferee company in event of merger or amalgamation?

The scheme or contract involving the transfer of shares or any class of shares in a company (the transferor company) to another company (the transferee company) has been approved by the holders of not less than ____ in value of the shares whose transfer is involved.

The approval from 9/10th shareholders in value shall be received within how many months after making of an offer in that behalf by the transferee company.

The transferee company shall express his desire to acquire the remaining shares of dissenting shareholders within how many months after the expiry of the said four months

In the event of a majority shareholder or shareholders requiring a full purchase and making payment of price by deposit with the company for-
• any shareholder or shareholders who have died or ceased to exist, or
• whose heirs, successors, administrators or assignees have not been brought on record by transmission,
the right of such shareholders to make an offer for sale of minority equity shareholding shall continue and be available for a period of ____ from the date of majority acquisition or majority shareholding.

The books and papers of a company which has been amalgamated with, or whose shares have been acquired by, another company under this Chapter shall be disposed _________

A meeting of members of ABC Limited was convened under the orders of the Court to consider a scheme of compromise and arrangement. Notice of the meeting was sent in the prescribed manner to all the 600 members holding in the aggregate 25,00,000 shares. The meeting was attended by 450 members holding 15,00,000 shares. 210 members holding 11,00,000 shares voted in favor of the scheme. 180 members holding 3,00,000 shares voted against the scheme. The remaining members abstained from voting. whether the scheme is approved by the requisite majority.

An amalgamation has been proposed between Magnum Limited and Micro Limited. A meeting of members of Micro Limited was convened under the orders of the Tribunal for the purpose of considering the scheme of amalgamation. The company has a paid up share capital of Rs1.50 crore consisting of 15,00,000 shares of Rs10 each. The meeting was attended by 500 members holding 10,00,000 shares. 300 members holding 7,00,000 shares in the aggregate voted for the scheme. 150
members holding 2,00,000 shares in aggregate voted against the scheme. 50 members holding
1,00,000 shares walked out of the meeting in protest from voting. Choose the correct statement regarding the validity of the approval of the Scheme based on the provisions of the Companies Act, 2013

A Ltd. was amalgamated into AB Ltd. AB Ltd had held 100 % shares in AC Ltd. Both AB Ltd and AC Ltd held 10000 shares in A Ltd. before the amalgamation took place. A Ltd had 100000 issued shares in total before amalgamation and 70000 shares therein were held by B Ltd who also later became shareholder in AB Ltd
under amalgamation. But the shareholders apart from B Ltd. (and excluding AB Ltd., and AC Ltd) holding 10000 shares did not become shareholders in the new AB Ltd. Assuming all other conditions for Amalgamation in the nature of merger are fulfilled, would this be:

B Limited was demerged to B Reality Limited and B Limited. What type of demerger is this?

The time limit within which the representation if any, of Sectoral regulators shall be made within from the date of receipt of Notice of the meeting to be called, held and conducted by the Tribunal

Sahana Ltd. need to park the funds received from XYZ Ltd. in a separate bank account, to which the dissenting shareholders are entitled to. According to the provisions of the Companies Act, 2013, within how many days, the said funds should be dispersed to the dissenting shareholders?

The Tribunal may dispense with calling of a meeting of creditor or class of creditors where such creditors or class of creditors____

A notice shall provide that the persons to whom the notice is sent may vote in the meeting either themselves or through proxies or by postal ballot to the adoption of the compromise or arrangement within _____ from the date of receipt of such notice

Any sum received by the transferor company under section 235 shall be paid into a separate bank account and shall be disbursed to the entitled shareholders within how many days?

The liability in respect of offences committed under this Act by the officers in default of the transferor company prior to its merger, amalgamation or acquisition____