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amalgamation

CA Vijay Jain (Chartered Accountant) (176 Points)

22 July 2010

What about dissented shareholders & fund fractional shares & what is its treatment

its urgent

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3 Replies

Jibin Thomas (CA Final,B COM(H)) (109 Points)
Replied 22 July 2010

disented shareholder means the shareholder who does not agree with the terms of amalgamation & are not satisfied with shares they are getting in the new company......therefore its treatment is like this.......when u are calculating the pc........disented shareholders are separatly given their share in cash & while calculating the equety share in new co. the disented shares are to be deducted(as they r being discharged in cash).............................................fund fractional shares are given in cash

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AMAR (Final Student) (69 Points)
Replied 22 July 2010

decenting share holders are not willing to accept the scheme of amalgamtion so transferee co. will not pay any amt. as PC to decenting share holders and pay only to other share holders. Transferor co. will directly pay to the decenting share holders and this amt. is lunb-sum.

entry in the books of transferor co.

to close share holders a/c

eq. share capital a/c dr.

to decenting share holders a/c

to other share holders a/c

amt. paid to decenting share holders

decenting share hoolders a/c dr.

to bank a/c

amt. paid to other share holders

other share holders a/c dr.

to shares in transferee co. a/c

to debenture of transferee co. a/c

to cash a/c

amt. left in the share holders a/c will be paid only to other share holders as they will accept the scheme of amalgamation.

fractional shares

transferor co. will not pay shares in fraction so he will pay by cash or by bank.

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 22 July 2010

Originally posted by : AMAR
	decenting share holders are not willing to accept the scheme of amalgamtion so transferee co. will not pay any amt. as PC to decenting share holders and pay only to other share holders. Transferor co. will directly pay to the decenting share holders and this amt. is lunb-sum. entry in the books of transferor co. to close share holders a/c eq. share capital a/c dr. to decenting share holders a/c to other share holders a/c amt. paid to decenting share holders decenting share hoolders a/c dr. to bank a/c amt. paid to other share holders other share holders a/c dr. to shares in transferee co. a/c to debenture of transferee co. a/c to cash a/c amt. left in the share holders a/c will be paid only to other share holders as they will accept the scheme of amalgamation. fractional shares transferor co. will not pay shares in fraction so he will pay by cash or by bank.