The Ministry of Corporate Affairs has through a gazette notification dated 1st February, 2021 amended the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016. With this Amendment a scheme of merger or amalgamation under section 233* of the Companies Act, 2013 can be entered into between any of the following class of companies, namely:-
(i) two or more start-up companies; or
(ii) one or more start-up company with one or more small company
The Amendment has further defined “start-up company” to mean 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.”
For a detailed read, please click on hyperlink below.
Source: Ministry of Corporate Affairs
