NCLT allows dispensing of creditors meeting in scheme of arrangement

When transferor companies are wholly owned subsidiaries of transferee company and financial position of transferee is highly positive and merger is not effecting rights of applicant shareholders or creditors, allowing transferee company to obtain approval without taking shareholders’ approval is permissible under law and, therefore, transferee company need not hold any meeting either with its creditors or members.

November 18th, 2017