c. Combined claim relationship: If the compromise or arrangement relates to more than one entity, the fact and details of a relationship that exists between those entities that are parties to that system of compromise or arrangement, including holding companies, subsidiaries or affiliates. A plan of merger or merger under section 233 of the Act may be concluded between any of the following categories of companies, namely: – The Companies Act 2013 provides for an accelerated merger for small companies or holding companies and subsidiaries. We anticipate that due to the requirement in Rule 17a-8 that shareholders of the acquired fund must approve certain fund mergers, there will be few additional shareholder votes each year.46 Currently, in most (if not all) cases, acquired funds receive shareholder approval before proceeding with mergers that materially alter the investments held by the fund`s shareholders. Staff estimate that the cost of shareholder approval for a fund merger is approximately $75,000.47 This article describes the major changes introduced by the Mergers Act, 2013, a term also used interchangeably in the context of consolidation in Indian law. In addition, these amendments will be compared with the 1956 Act. We need to make sure that as part of consolidation, companies must have a strong clause in their organization`s social contract to merge, although their absence is not an obstacle, but it will make things work. This rule is intended to ensure that supervisory boards scrutinise merger transactions and their terms thoroughly. Even without the rule change, the boards of directors of the funds would meet to review the merger; Therefore, the additional costs attributable to the Board`s requirements for the Rule 17a-8 provision are likely to be minimal. There are costs associated with obtaining approval for the outstanding voting securities of the acquired fund. Staff estimate that, each year, about twenty funds will seek shareholder approval who would not otherwise have held a shareholder vote.57 The funds or their advisors incur legal, shipping, printing, solicitation and totalization costs associated with a shareholder vote. Based on discussions with fund and service provider representatives, we estimate that the total cost of a fund acquired through shareholder approval for a fund merger is approximately $75,000.

Therefore, we anticipate that the total annual costs associated with this disposition will be approximately $1,500,000. However, since a fund that conducts a shareholder vote is not required to send an information statement, the cost of shareholder voting is offset by the avoided costs associated with the submission of disclosure statements. Based on discussions with fund representatives, we estimate that the preparation and delivery of each information statement would cost $30,000. As a result, we anticipate that costs totalling approximately $600,000 will be avoided annually and that the net cost of the shareholder voting provision will be approximately $900,000.58 The court may sanction the amalgamation or plan of amalgamation on Form AMG by order. 10 if the court is satisfied that the procedure set out in sections 232 (1) and 232 (2) has been followed, or if the court may, by subsequent orders, provide for: The Companies Act 2013 came into being and replaced the 1956 Act with far-reaching amendments; including mergers and acquisitions (M&A). (8) For the purposes of this rule, it is specified that, with respect to agreements or compromise plans referred to in section 233 of the Act, the undertakings concerned may, at their discretion, decide to implement those plans in accordance with sections 230 to 232 of the Act, even if the condition set out in paragraph 233(1)(d) of the Act is not met. 1. The notice of merger shall be accompanied by a draft terms of amalgamation and a report on the effects of the merger on each class of shareholders. An evaluation report and other disclosures must be submitted with notice called by the meeting. Today`s amendments to Rule 17a-8 are intended to make the rule available to more mergers of linked funds, eliminating the need for a specific exemption in most cases.51 The rule changes will expedite many mergers that could only be completed prior to the amendments if we granted an exemption. These mergers will now be more profitable for the merged funds, their shareholders and affiliates.

It is possible that reducing the cost of mergers will result in increased pooling of funds, which will increase industry concentration. However, we do not believe that the cost of obtaining an exemption order from the Commission is a significant factor in the funds` decisions to enter into mergers, and we do not expect the rule changes to significantly increase or decrease the number of annual mergers; Therefore, the changes will not have a significant direct impact on efficiency, competition or capital formation.52 a.