short notes on Slump Sale cri companies act 2013

Posted on 03-04-2016        By ADMIN

Slump Sale:

Ina slump sale, a company sells or disposes off whole or substantiallly the wholeof its undertaking for a lump sum pre-determined consideration, called theslump price. In a slump sale, an acquiring company may not be intgerested inbuying the whole company,but only one of its divisions or a running undertakingon a going concern basis.

Itmay be noted that for slump sale, the company selling its business is requiredto comply with the provisions of of the companies Act, 2013 i.e., an ordinary resolutio of the shareholders is required for slump sale andwhich has to passed by postal ballot in the case of listed companies.

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