234. Merger or amalgamation of company with foreign company
(1) The provisions of this Chapter unless otherwise provided under any other
law for the time being in force, shall apply mutatis mutandis to schemes of mergers and
amalgamations between companies registered under this Act and companies incorporated
in the jurisdictions of such countries as may be notified from time to time by the Central
Government:
Provided that the Central Government may make rules, in consultation with the
Reserve Bank of India, in connection with mergers and amalgamations provided under this
section.
(2) Subject to the provisions of any other law for the time being in force, a foreign
company, may with the prior approval of the Reserve Bank of India, merge into a company
registered under this Act or vice versa and the terms and conditions of the scheme of
merger may provide, among other things, for the payment of consideration to the
shareholders of the merging company in cash, or in Depository Receipts, or partly in cash
and partly in Depository Receipts, as the case may be, as per the scheme to be drawn up
for the purpose.
Explanation.—For the purposes of sub-section (2), the expression “foreign
company” means any company or body corporate incorporated outside India whether
having a place of business in India or not.