HINDUSTAN MOTORS LIMITED have decided to de-merge their Chennai car plant as a going concern to their fully owned subsidiary organisation, Hindustan Motor Finance Corporation Limited (HMFCL).
The company’s board passed a scheme of arrangement regarding the ownership and management of HML at a recent meeting. HMFCL will issue and allot to the shareholders of HML one equity share of Rs 5 each in HMFCL credited as fully paid-up for every 13 equity shares of Rs 5 each fully paid-up held by them in the capital of HML. The scheme is subject to a condition upon the requisite approvals being received, including the approval of shareholders and sanction of the High Court in Kolkata pursuant to Sections 391 and 394 of the Companies Act, 1956, and was set to become operative from April 1, 2012.
