There should be power in the company's memorandum to amalgamate
{"Image DocumentName": "There should be power in the company\u2019s memorandum to amalgamate", "Image ImageDescription": "There should be power in the company\u2019s memorandum to amalgamate. If it is not there it should be acquired by altering the memorandum. It is not necessary that the company adopting the scheme should be in financial difficulties or that it should not be an affluent company. A reconstruction or amalgamation may take any of the following forms i.e., (1) By sale of shares, (2) By sale of undertaking, (3) By sale and dissolution, (4) By a scheme of arrangement. Sale of Shares is the simplest process of amalgamation or take over. Shares are sold and registered in the name of the purchasing company. The selling shareholders acquire either compensation or shares in the acquiring company. The mode to carry out schemes of the reconstruction and amalgamation is provided in Sections 394 and 395 of the Indian Companies Act \u2013 The term \u2018Reconstruction\u2019 implies the formation of a new company to take over the assets of an existing company with the idea that the persons interested and the nature of business substantially remain the same.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}