Amendments To The Rules For Certain Mergers And Amalgamations

The Ministry of Corporate Affairs has amended certain provisions of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, for schemes of merger or amalgamation ("Scheme") between small companies and start-ups, or between a holding company and its wholly-owned subsidiary. The key aspects of the amendment are as follows:

• Timeline for Objections: A timeline of 30 days after filing of the Scheme has been provided for the Registrar of Companies or the official liquidator to provide their objections or suggestions ("Objections") to the Central Government.
• Confirmation Order: If no such Objections are received, the Central Government can issue the confirmation order for the Schemeonly if it is in the interest of the general public or the creditors. Such confirmation order must be issued within 15 days from expiry of the timeline for Objections.