1. #1
    Unregistered

    When the company is taken over by another company, does the PF and ESI account also changes?

    When the company is taken over by another company, does the PF and ESI account also changed. Can the company which has been taken over continue all these deduction in the name of old company or they have to change it to the name of the company who has taken it over?

  2. #2
    Labournet Law Consultancy Array
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    Re: When the company is taken over by another company, does the PF and ESI account also changes?

    The effect of the change of ownership on the PF is clearly mentioned in section 17 B of the Employee provident funds and miscellaneous provision act.

    As per such section when the ownership is transferred from the transferer and the transferee either holly or partly what ever format is it may be such as Gift, sale or lease both the transferer and the transferee is jointly and saverally liable for payment of contribution or any amount due.

    This section also says that the liability for the transferee is limited to the value of assets transferred by the transferer to the transferee.

    The same is on the effect of change of ownership on the ESI.

    When the ownership is changed then the ESI and PF will also change and will be transferred to the new owner.

    As per the ESI and PF act the new employer has to intimate about the transfer to the ESI and PF commissioner within 3 weeks.
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