Acquisition of shares by virtue of schemes of reorganisation and arrangement ‑ Whether approval under sub‑section (4) necessary - Companies Law - No. 8/64/73‑CL‑VI,

Circular : No. 8/64/73 ‑ CL ‑ VI, dated 16 ‑ 2 ‑ 1974. Subject:- Acquisition of shares by virtue of schemes of reorganisation and arrangement ‑ Whether approval under sub ‑ section (4) necessary Sometimes companies acquire shares of other companies by virtue of schemes of reorganisation and arrangement under section 391. Since this Department is a statutory party to such scheme in view of section 394A, it has been decided that approval of this Department under section 372 will not be necessary to investments made in such cases. It has also been decided that since in such cases, notices are received by the Regional Directors under section 394, they may scrutinise such schemes and bring to the notice of the courts the requirements of section 372 so that the court may keep this aspect also in view while passing orders on such schemes under section 391/394.