A company can sell its assets and liabilities through slump sale. As per section 2(42C) of the Income Tax Act, "slump sale" means the transfer of one or more undertaking, by any means (“by any means” was substituted with “as result of sale” as per the Finance Act, 2021. In my opinion and understanding, it … Continue reading Understanding Slump Sale vs Demerger: Key Tax Differences
POSITION OF CREDITORS IN THE CASE OF DEMERGER AND SCOPE OF SECTION 230-232 OF THE COMPANIES ACT WRT TO CREDITORS
UNDERSTANDING THE “UNDERTAKING” As we all know that in the case of Demerger, company transfer’s its undertaking as going concern to the resulting company which can be a new company or existing company. Interestingly, “undertaking” has not been defined under this section but under the explanation to section 180 (1)(a) which says that undertaking means … Continue reading POSITION OF CREDITORS IN THE CASE OF DEMERGER AND SCOPE OF SECTION 230-232 OF THE COMPANIES ACT WRT TO CREDITORS
What is Demerger? Insights on Why Companies Opt for Demerger
When a company transfers its undertaking, properties and liabilities to one or more existing undertaking or new undertaking it is precisely known as Demerger. Interestingly, companies act no where defines or talks about the Merger or Amalgamation or Demerger, rather section 230 of the companies act, 2013 defines it as the compromise or arrangement between … Continue reading What is Demerger? Insights on Why Companies Opt for Demerger
DUCTUS EDGE 