Amendment to Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2017

MCA has notified the amendments to the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2017 which shall come into force from the date of notification. In the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, (hereinafter referred to as the principal rules) after Rule 25, Rule 25A shall be inserted which provide for Merger or Amalgamation of a Foreign company with an Indian Company and vice versa after obtaining prior approval of Reserve Bank of India and after complying with the provisions of Sections 230 to 232 of the Act and these rules. Further, MCA has issued Notification which states that the Central Government appoints 13.04.2017 as the date on which the provisions of section 234 of the Companies Act, 2013 shall come into force. Section 234 deals with the Merger and Amalgamation of company with foreign company.

(The above article has been compiled by CS Reema Jain)