AMALGAMATION OF TWO UNITS OF TAMIL NADU STATE EXPRESS TRANSPORT CORPORATIONS

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The Government in the Department of Company Affairs (DCA) has issued a notification approving amalgamation of the State Government owned State Express Transport Corporation (Tamil Nadu Division II) Ltd. and the State Express Transport Corporation (Tamil Nadu Division I) Ltd. with immediate effect. The orders have been issued under Sub-Sections (1) and (2) of Section 396 of the Companies Act, 1956. Accordingly, the State Express Transport Corporation (Tamil Nadu Division II) Ltd. stands dissolve and the resulting company after the amalgamation will be known as the State Express Transport Corporation (Tamil Nadu Division I) Ltd.

The amalgamation seeks to achieve effective and efficient use of the depots, equipment, personnel, material or and other infrastructural facilities for ensuring coordination in policy, for the efficient and economic expansion of production units like body building unit, reconditioning unit, re-treading unit for providing efficient, adequate and economical road transport services on inter-state and intra-state routs and allied activities.

The amalgamation follows resolutions passed by the Boards of Directors of both the corporations and publication of such resolutions in two newspapers each of the State of Tamil Nadu.

All the assets and liabilities of the dissolved company namely the State Express Transport Corporation (Tamil Nadu Division II) Ltd. become the assets and liabilities of the resulting company namely the State Express Transport Corporation (Tamil Nadu Division I). As a result, both the Government companies of the State of Tamil Nadu have become a single company of the State Government.

The Registrar of Companies, Tamil Nadu will register the resulting company as the single entity under the Companies Act, 1956, accordingly. The Memorandum and Articles of Association of the dissolved company as it stood immediately before the amalgamation order will become the Memorandum and Articles of Association of the resulting company from the appointed day. The shares and the equity capital of the dissolved company along with its assets and liabilities have merged with the resulting company.