The Fast Track Merger is a quick and relatively easier and economical way of merger between a holding company and its wholly owned subsidiary or a merger between 2 small companies (i.e. companies with paid up capital less than Rs. 50 Lacs or turnover less than Rs. 1 crore).
Central Government has appointed Regional director (RD), who has the power to approve the scheme of merger and the Companies need not approach NCLT. The RD in turn invites the comments on the proposed scheme from the Registrar of Companies (ROC) and the Official Liquidator (OL).
Subject to the approval of the Board, approval from 90% Members (in number of shares) and 90 % creditors in value and subject to the clearance from ROC and OL, the RD may approve the merger within 60 days of the filing of the scheme. If the RD receives any objections from ROC / OL or if the RD thinks that it is against the Public Policy, then it may file an application before NCLT u/s 232 for taking it as a regular M&A application.
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