Aequs Ltd: Amalgamation Scheme Rejected by Regional Director

Aequs Limited announced the rejection of its Scheme of Amalgamation with its wholly-owned subsidiaries, AeroStructures Manufacturing India Private Limited, Aequs Engineered Plastics Private Limited, and Aequs Force Consumer Products Private Limited. The rejection order was issued by the Office of the Regional Director, South Western Region, Ministry of Corporate Affairs. The primary reasons cited for the rejection include non-compliance with Section 233(1)(b) of the Companies Act, 2013, specifically regarding the required 90% shareholder approval threshold and issues related to the circulation of the postal ballot notice. Additionally, pending labor court cases against a transferor company and the lack of NOC from stock exchanges for the listed transferee company were noted. Aequs Limited is currently evaluating its next steps. The company stated that this internal restructuring process does not materially impact its business operations.