Company (Compromises, Arrangements and Amalgamations) Amendment Rules, 2021
The Central Government recently brought amendments to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.
Under the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2021, additions have been made to Rule 25 of the 2016 rules.
As per the newly inserted rule (Rule 25 (1A)), two classes of companies i.e. two or more startup companies, and one or more start-up company with one or more small company, may undertake a scheme of merger or amalgamation under section 233 of the Companies Act, 2013.
For the said rule, a startup company refers to the company incorporated under Companies Act, 2013 or Companies Act, 1956 and in accordance with notification number G.S.R. 127 (E), dated the 19th February, 2019 issued by DPIIT (Notification pertaining to recognition and certification of Startups).
Originally posted on www.kpalegal.com on 6th Feb 2021