First Notes - 12 December 2016
First Notes - 12 December 2016
Provisions relating to merger, amalgamation and winding-up, etc. are notified under the Companies Act, 2013
On 7 December 2016, the Ministry of Corporate Affairs (MCA) issued a notification, whereby certain sections of the Companies Act, 2013 (2013 Act) were notified to come into force. These sections amongst others, relate to:
- reduction of capital and variations of shareholders’ right;
- compromises, arrangements and amalgamations.
In addition to the above, certain winding-up sections were also notified by MCA. The notification states that the aforementioned sections would come into force on 15 December 2016.
MCA has also on 7 December 2016 notified the Companies (Transfer of Pending Proceedings), Rules 2016 (Transfer Rules) and also issued the Companies (Removal of Difficulties) Fourth Order, 2016 (Difficulties Order) to facilitate a smooth transition of the proceedings initiated under the Companies Act, 1956 (1956 Act) and pending before any district court or high courts to the National Company Law Tribunal (NCLT).
In this issue of First Notes, we have discussed key provisions of the sections pertaining to reduction of capital, variations of shareholders’ right and compromises, arrangements and amalgamations and the list of pending proceedings which shall be transferred to NCLT.
To access the text of the MCA
- Notification No. S.O. 3677(E) dated 7 December 2016, click here
- Companies (Transfer of Pending Proceedings), Rules 2016, click here
- Companies (Removal of Difficulties) Fourth Order, 2016, click here
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