SECTION 383

Where the merger is realized by contributions to a new private limited company, the new company may be formed with the contributions of the merging companies alone. Where the division involves contributions to new private limited companies, the new companies may be incorporated with the contributions of the divided company alone. In this case, and where the shares of each of the new companies are distributed to the members of the divided company proportionately to their shares in the said company, there shall be no need for the report referred to in Article 672 of this Uniform Act to be drawn up. In the cases provided for in the two preceding paragraphs, the members of the disappearing companies may act as of right as founders of the new companies and shall proceed in accordance with the provisions of this Book.