Question

Section 233 of the Companies Act, 2013, deals with “fast track merger”. What is the time duration and the concerned authority for approval?

• A. 1 Year, Regional Director
• B. 60–90 Days, Regional Director
• C. 60–90 Days, NCLT
• D. 45–90 Days, NCLAT

Hint:

Remember: "Fast Track" means bypassing the NCLT. If you see a question about Section 233, always look for "Regional Director" and the "60–90 days" window!

Answer 1

The Correct Option is B

Step 1: Identify the provision.
Section 233 of the Companies Act, 2013, deals with the fast track merger, a quicker and simpler way for certain companies to merge.

Step 2: Understand who can use it.
This fast route is meant for small companies and for holding-and-subsidiary companies. They can skip the long process before the National Company Law Tribunal (NCLT).

Step 3: Find the approving authority.
For these mergers, approval comes from the Central Government, and this power is given to the Regional Director. So it is the Regional Director, not the NCLT, who approves.

Step 4: Find the time duration.
The scheme is meant to be cleared within about 60 to 90 days of filing the papers, making it much faster than a normal merger.

Step 5: Eliminate the wrong options.
The 1 year option is too long. The options naming NCLT or NCLAT are wrong because fast track mergers go to the Regional Director. So only the 60 to 90 days with Regional Director option fits both parts.

Step 6: State the answer.
The correct combination is 60 to 90 days and the Regional Director.
\[ \boxed{\text{60-90 Days, Regional Director}} \]