Question

Question:
As per Companies Act 1956,
(A)
Amalgamation includes absorption
( (B)
Absorption includes amalgamation
(C)
Amalgamation excludes absorption
(D)
Internal reconstruction includes
external reconstruction.​

Answer 1

Question:

As per Companies Act 1956,

(A)

Amalgamation includes absorption

( (B)

Absorption includes amalgamation

(C)

Amalgamation excludes absorption

(D)

Internal reconstruction includes

external reconstruction.​

Answer 2

Option “A” is correct i.e. amalgamation includes absorption.

• According to the companies act 1956, amalgamation includes absorption.

• The requirements relating to absorption and amalgamation are delimited in sections 390 to 396A in Chap V of Part VI of the Companies Act, 1956.  

• Any suggestion of amalgamation or absorption begins with the method of due diligence, as the proposal for absorption without due diligence is like entering a channel with darkness growing with each step.

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