Introduction:

In the dogfight of combination and demerger, two dates are crucial, the "Appointed Date" and secondly the "Effective Date". Corporate managers spend a lot of time to plan the true timing of these dates. 'Appointed Date' is normally approved to secure the interests & objects of the respective companies. And 'Effective Date' is finalized by tall Court depends upon on filing of a utter order of tall Court taking into account Registrar of how to get gnib appointment .

irp appointment of 'Appointed Date' & 'Effective Date':

Any plot of compromise or treaty should identify a date in the scheme itself as 'Appointed Date'. This 'appointed date' is crucial for arriving at values of assets and liabilities appearing in the books of Accounts both for the strive for of the transfer to the Transferee company and as a consequence for arriving at the value of shares for the transferor and transferee company viz. clash ratio. Generally, the first day of a month or the first hours of daylight of a financial year is identified as the 'appointed date', while the Court has the discretion to find any date as 'transfer date'.

The 'Effective Date' on the other hand is the date on which the transferee company files the order of the high Court sanctioning the scheme considering the Registrar of Companies for registration and gone the order has as a result filed the assimilation or concord becomes working or having arrive into force from the 'Appointed date'. The effective date is subsequent date and the company has no govern exceeding it.

Issues more or less 'Appointed Date' & 'Effective Date' and their effects upon Various Aspects of Restructuring:

1. Identification of Assets & Liabilities of Transferor Company:
As per the requirements of Section 391 to 394 of the Companies Act, 1956 the Transferor company should identify and quantify the assets and liabilities which are sought to be transferred to the transferee company below blend or demerger. This identification & quantification of assets and liabilities should be over and done with as on Appointed Date.

The details of such assets & liabilities may be annexed as a schedule to the scheme. This identification gives reality to the scheme, as members of both the companies acquire a definite idea approximately what is going to be transferred?

2. Changes in the name/status of the company after Appointed Date:
There could be some changes in name, dwelling or status of the company after the appointed date. Normally such changes realize not affect the certify of the plot past tall Court unless they adversely appear in the rights & interests or obligations of the company and/or its members and creditors.

3. Accounting Treatment:
Normally the Transferee Company should, upon the plot coming into effect on full of life date baby book the assets and liabilities of the Transferor Company vested in it pursuant to the Scheme, at the fair values thereof at the close of issue of the daylight shortly preceding the Appointed Date.

4. layer in share capital & Appointed Date:
The shares are allotted lonely after the scheme is sanctioned by the court and not before. Further, the mass of authorised share capital is always upon sanctioning of the scheme. thus any argument to the plot upon the ground that upon appointed date the portion capital of the Transferee Company was not plenty to meet the expense of effect to the plot cannot be sustained.