Two companies propose an AMALGAMATION under which the undertaking of one company is transferred to another and its members receive shares of the transferee. Such a scheme of amalgamation is sanctioned by:

A scheme of compromise, arrangement or AMALGAMATION under the Companies Act, 2013 must be presented before the NCLT for approval. The procedure is set out in Sections 230 (compromise and arrangement), 231 (powers of the Tribunal to implement) and 232 (merger and amalgamation), with the transferor's and transferee's members and creditors voting on the scheme, and the Tribunal sanctioning it after considering the prescribed disclosures and objections. Post-sanction, the prescribed documents are filed and the amalgamation takes effect. The NCLT is thus the statutory forum sanctioning mergers and amalgamations.