Amalgamation And Striking-off As Effective Tools In Restructurings

I. INTRODUCTION

Amalgamations and striking-off applications, although not new, have in recent times been frequently used as effective tools by corporations in restructuring their businesses, specifically by divesting non-core pieces of their businesses. In this article therefore, we discuss the key requirements and procedures for amalgamations and striking-off applications.

II. AMALGAMATION

1) Amalgamation procedure

There are two (2) forms of voluntary amalgamation procedures under the Companies Act 1967 (Companies Act), the procedure under section 215D of the Companies Act (Short Form Amalgamation) and the procedure under sections 215B and 215C of the Companies Act.

The Short Form Amalgamation is available solely for companies within the same corporate group and where there are no minority interests, and is hence suited for intra-group restructurings and reorganisations. This procedure is only permitted between a holding company and one (1) or more of its