Salient Features of Companies Act 2013 relating to Corporate Restructuring Section 230 to 240
Salient Features of Companies Act 2013 relating to Corporate Restructuring Section 230 to 240 Compromises, Arrangements and Amalgamations • National Company Law Tribunal to assume jurisdiction of High Court. • Section 230(2) – Application for compromise or arrangement to be accompanied by an affidavit, disclosing 1. All material facts relating to the company. 2. Reduction of capital if any included in the compromise or arrangement; 3. Any scheme of corporate debt restructuring consented to by not less than 75% of the secured creditors in value along with creditors responsibility statement, report of the auditor as to the funds requirement after CDR and the conformity to liquidity test etc. • Proviso to Section 230(3) – Notice relating to compromise or arrangement and other documents to be placed on the website of the company. • Section 230(5) – Notice of meeting for approval of the scheme of compromise or arrangement be sent to various regulators including: 1. The Central Government; 2. Income-tax Authorities; 3. Reserve Bank of India (`RBI’); 4. Securities Exchange Board of India (`SEBI’); 5. The Registrar; 6. Respective Stock Exchange;
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