Mid Term Examination, March 2017
B.A.LL.B. (HONS.)
Semester VIII X CLS-Corporate Reconstruction (Hons.-II)
Max. Marks: 20 Max. Time: 1:30 Hrs.
Note: Answer any TWO questions out of three. All questions carry equal marks.
1. There are two small companies Kashi Ltd., and Avantika Ltd., who want to merge. Kashi Ltd., does not want to go through the tedious formalities of Section 230 and Section 232 of the Companies Act, thus they choose to merge through fast track merger. Is their choice correct? If yes, why? Discuss in detail the merger process which according to you should be followed by Kashi Ltd., and Avantika Ltd. (Marks 10)
2. Lifeline Pvt. Ltd., a company incorporated in India, wanted to extend its business in USA and therefore they merged with US Company Alexia Corporation. After the merger resulting company was Alexia Corporation. Dissenting Shareholders of Lifeline Pvt. Ltd. has challenged the validity of Merger. Is such kind of merger not allowed under the Indian Law? Give legal reasoning. Can minority or dissenting group be blatantly disregarded in cases of Merger and Amalgamation? Is there any form of protection given to them under the Law?
(Marks 10)
3. Write short answers on the following:- (Marks 2×5=10)
a. What is reverse triangular merger? Give Example
b. What do you understand by Double Majority in case of Merger and Amalgamation? Is it same under the Companies Act of 1956 and 2013?
c. Discuss organic and non-organic corporate reconstruction.
d. Can all the shareholders and creditors raise objection during merger? Yes or No. Give reason for your answer.
e. Explain Corporate Strategies and its Kind.