The Ministry of Corporate Affairs (MCA) notified the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2021 so as to enable the Start-up companies to enter into a scheme of Merger and Amalgamation.
The notification seeks to further amend the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.
The amendment notified that a scheme of merger or amalgamation under section 233 of the Act may be entered into between any of the class of companies, namely two or more start-up companies; or one or more start-up companies with one or more small companies.
The “start-up company” means a private company incorporated under the Companies Act, 2013 or Companies Act, 1956 and recognised as such in accordance with notification number G.S.R. 127 (E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade.
The notification will be effective from 1st February, 2021.
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