NCLAT sanctions amalgamation scheme, upholds DCF valuation method.

The National Company Law Appellate Tribunal (NCLAT) sanctioned an amalgamation scheme under sections 230-232 of the Companies Act, 2013, endorsing the Discounted Cash Flow (DCF) method for share valuation. The tribunal found no fault with the use of the DCF method by the valuers and amalgamating companies, as no objections were raised by statutory or regulatory bodies, except the Income Tax Department. Citing the Supreme Court's precedent, the NCLAT emphasized that courts should not override the exchange ratio determined by experts if it has the bona fide approval of the majority of shareholders. The NCLAT ruled that the National Company Law Tribunal (NCLT) wrongly interfered with the scheme, disregarding the commercial judgment of shareholders, creditors, and directors. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X