Dear All,
Can any one put light on the subject of merger of Section 25 Companies. by Section 25 Companies i mean, companies incorporated under the Companies Act and privileged under Section 25 for some reasons. However these companies are treated and registered as trusts under section 12A of the Income tax Act, 1961.
All the conditions to be followed under the Income tax Act, for transfer, amalgamation etc. are fulfilled. However, while preparing the application to be sent to the high court under section 391/394 of the Companies Act, what could be the possible way in which the consideration can be fulfilled, since there is no share capital in a Section 25 Company so it cannot allott shares to the transferor company.
Can anyone put light on this issue, may be someone may have come across this kind of arrangement?????
CAclubindia
