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ARTICLE · 27 MARCH 2020

Minority Shareholders – "Squeezed Out?"

King, Stubb & Kasiva
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The MCA vide its recent set of notifications dated February 3, 2020, has brought in a new regime for taking over minority shareholders through a scheme of arrangement to be placed before and approved by the NCLT .

IndiaLitigation, Mediation & Arbitration
Rajashree Devchoudhury
Rajashree Devchoudhury
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The Ministry of Corporate Affairs ("MCA") vide its recent set of notifications dated February 3, 2020, has brought in a new regime for taking over minority shareholders through a scheme of arrangement to be placed before and approved by the National Company Law Tribunal ("NCLT")1.

Recent amendments

The much-anticipated sub-sections 11 and 12 of Section 230 of the Companies Act, 2013 (the "Act") have eventually been notified by the MCA, effective from February 03, 2020. In addition to that, MCA has also inserted a new sub-rule 5 in Rule 32 of the Companies (Compromises, Arrangements and Amalgamation) Rules, 2016 (the "Rules"), and Rule 80A3 in the National Company Law Tribunal Rules, 2016 (the "NCLT Rules") in order to set forth the procedural aspects of the takeover rules especially pertaining to minority shares. The MCA, vide these amendments, has for the first time attempted to encompass private and unlisted companies under the takeover regime, which was

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