The dividend of a company has to be declared according to the Section 123 of Companies Act 2013. Recently, with an amendment to Companies (Audit and Auditors) Rules, 2014, it has been made compulsory for the auditor’s report to include comments on whether the dividend was declared or paid in compliance with Section 123 of the Act, in the financial year.
When multiple entities combine or unite together to form one separate entity, it is called amalgamation. Amalgamation is a measure for two competing companies to avoid completion among themselves and offer more to the market. This is done for the mutual benefit of the companies in question.
Amalgamation is said to be an arrangement between two companies for their benefit and to curb completion between them. Two or more companies come together to form a new company or a subsidiary of any one company.