Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2021

The notification issued by MCA on Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2021

Notification date

01.02.2021

Applicability

Start-up companies

Effective date

They shall come into force on the date of their publication in the Official Gazette.

Subject

Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2021

Brief Description:

In the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, in rule 25, after sub-rule (1) the following sub-rule shall be inserted, namely:-

(1A) A scheme of merger or amalgamation under section 233 of the Act may be entered into between any of the following class of companies, namely:-
(i) Two or more start-up companies; or
(ii) One or more start-up company with one or more small company.

Explanation.- For the purposes of this sub-rule, “start-up company” means a private company incorporated under the Companies Act, 2013 or Companies Act, 1956 and recognised as such in accordance with notification number G.S.R. 127 (E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade.

Notification is attached herewith for your ready reference
and reading.