215D. Short form amalgamation

Question 1

215D. Short form amalgamation

Answer 1

General overview
[215D.01] A short form amalgamation involves either a vertical amalgamation between a holding company and one or more of its wholly-owned subsidiaries, or a horizontal amalgamation of two or more wholly-owned subsidiaries: see the Report of the Steering Committee for Review of the Companies Act, April 2011, Chapter 3, paras 204–206. The short form amalgamation is often used by companies that undertake a reorganisation or restructuring of its business divisions. There is no real sale of shares in the amalgamating companies by the amalgamated entity. The members are required to approve the short form amalgamation by way of special resolution.