Section 44A of BRA : Section 44A: Procedure For Amalgamation Of Banking Companies

Explanation using Example

Imagine two banks, 'Bank A' and 'Bank B,' plan to merge to become a more substantial financial entity. According to Section 44A of the Banking Regulation Act, 1949, they must first draft a detailed amalgamation scheme. This scheme is then presented separately to the shareholders of both Bank A and Bank B.

Bank A and Bank B each call a shareholders' meeting, sending out notices three weeks in advance, which are published in local newspapers to ensure all shareholders are informed. At the meeting, the shareholders discuss the terms of the merger.

For the merger to proceed, a majo...

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