CORPORATE LAW UPDATE
1st June 2022
Issue No. 05/22-23
AMENDMENT OF COMPANIES (COMPROMISES, ARRANGEMENTS AND AMALGAMATIONS) RULES, 2016
Vide notification dated 30th May, 2022, the MCA has notified Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2022 thereby amending Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 (“Rules”) by inserting sub-rule (4) in Rule 25A and a new form No. CAA-16.
Rule 25A pertains to merger or amalgamation of a foreign company with an Indian company and vice versa. Pursuant to the amendment, in case of a compromise or an arrangement or merger or demerger between an Indian company and a company or body corporate which has been incorporated in a country which shares land border with India, a declaration in Form No. CAA-16 will be required at the stage of submission of application under section 230 of the Companies Act.
The said Form No. CAA-16 has been inserted in Annexure A, after Form no. CAA-15.
This amendment seems to be in line with the recent amendments to Companies (Prospectus and Allotment of Securities) Rules, 2014 and Companies (Share Capital and Debenture) Rules, 2014 whereby the onus has been put on the investee company to disclose whether they require prior approval under Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 and if yes, such approval has been obtained and attached to their respective forms.
The notification and the format for the declaration can be accessed here.
| Disclaimer: This newsletter is for general information only and not intended for any solicitation. Views expressed in this newsletter are as on date and not necessarily of V Law Partners (“VLaw”). While reasonable efforts have been taken to provide correct information, VLaw cannot and does not warrant or guarantee the accuracy of the information provided in the newsletter. Readers are advised not to rely solely on this information when making any decision.
Suggestions: If you do not wish to receive our newsletters or have any comments or suggestions for us, please write to us at – admin@vlawpartners.com |