Amalgamation ‑ No order to be made by High Court for dissolution of transferor company unless official liquidator makes report to the effect that affairs of company have not been conducted in a manner prejudicial to interests of its members - Companies Law - Circular : No. 10/75

Circular : No. 10/75 [23/9/75 ‑ CL ‑ III], dated 2 ‑ 6 ‑ 1975. Subject:- Amalgamation ‑ No order to be made by High Court for dissolution of transferor company unless official liquidator makes report to the effect that affairs of company have not been conducted in a manner prejudicial to interests of its members It was expected by the Department that the Regional Directors would bring to the notice of the High Courts the provisions contained in second proviso to section 394(1), which cast a duty on the part of the High Courts to obtain a report from the official liquidator about the affairs of the transferor company before passing an order of dissolution of the said company. It has, however, been observed that in some cases the Court did not issue notices to the official liquidator for furnishing his report as required under the aforesaid provisions of the Act. The Regional Directors should, therefore, point out invariably to the Court in all cases of notices under section 394A pertaining to amalgamation of companies about the aforesaid requirements of the second proviso to section 394(1).