Sick Industrial companies act (SICA) was enacted mainly to provide a solution to the problem of dealing with multiple agencies in order to attempt revival of sick industries.
In India, Companies Act, 1956 is the principal law governing companies. It is the central Act. A company operating in India shall be registered under the Companies Act. Companies Act 1956 gives special powers to High Court to monitor merger process.
Section 235 of the Companies Act, 2013 provides for Acquisition of shareholding of Transferor Company by Transferee Company.
To improve shareholders value: Since company’s surplus funds which have unattractive alternative investment options are utilised and reduction in number of shares results in higher EPS, buyback helps to create value for its shareholders.
In India, Companies Act, 1956 is the principal law governing companies. It is the central Act. A company operating in India shall be registered under the Companies Act.
Power to compromise or make arrangements with creditors and members:
Where a compromise or arrangement is proposed—
Between a company and its creditors or any class of them; or
Between a company and its members or any class of them;
Companies Act, 2013 does not specifically define a Joint Venture but it is included in the definition of an associate. Section 2(6) of the Act defines Associate Company as follows:
Slump sale is not specifically defined in the Companies Act. But in a common parlance it can be construed a transfer or sale of one or more undertakings for a lump sum consideration. No values are assigned to individual assets and liabilities in such transactions.