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Date: 15-May-2023 Category: Extra Ordinary State: Union Government Country: India

Companies Compromises Arrangements and Amalgamations Amendment Rules 2023

Issued by Ministry of Corporate Affairs · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The notification introduces the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2023, which amends the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.
  • The amendment modifies the timelines and procedures related to the approval of merger or amalgamation schemes under Section 233 of the Companies Act, 2013, specifically concerning the role of the Central Government, Registrar of Companies, and Official Liquidator.

Key Changes

  • The amendment replaces sub-rules (5) and (6) of Rule 25 of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.
  • If the Central Government receives no objections or suggestions from the Registrar of Companies and the Official Liquidator within 30 days of receiving the scheme copy under Section 233(2) and believes the scheme is in the public or creditors' interest, it may issue a confirmation order in Form No. CAA.12 within 15 days after the initial 30-day period.
  • If the Central Government does not issue the confirmation order within 60 days of receiving the scheme under Section 233(2), it will be deemed that the Central Government has no objection, and a confirmation order will be issued accordingly.
  • If objections or suggestions are received from the Registrar of Companies or the Official Liquidator within 30 days, and the Central Government deems these objections unsustainable and believes the scheme is in the public or creditors' interest, it may issue a confirmation order in Form No. CAA.12 within 30 days after the initial 30-day period.
  • If the Central Government believes the scheme is not in the public or creditors' interest based on objections or otherwise, it may file an application before the Tribunal in Form No. CAA.13 within 60 days of receiving the scheme, stating the objections and requesting the Tribunal to consider the scheme under Section 232 of the Act.
  • If the Central Government does not issue a confirmation order or file an application with the Tribunal within 60 days of receiving the scheme under Section 233(2), it will be deemed that it has no objection, and a confirmation order will be issued accordingly.
  • The amendment rules come into force on June 15, 2023.

Impact Analysis

Creditors

  • Creditors should monitor merger/amalgamation schemes that may affect them and, if necessary, communicate their concerns to the Registrar of Companies or Official Liquidator.

Corporates undergoing mergers/amalgamations

  • Action Item: Review current merger and amalgamation strategies in light of the new timelines. Prepare for potentially faster approvals, but also be ready to address objections and potential Tribunal referrals.

Registrar of Companies and Official Liquidator

  • Action Item: Enhance internal processes for reviewing merger/amalgamation schemes to meet the 30-day deadline. Develop clear criteria for identifying objections and providing suggestions.

Central Government

  • Action Item: Streamline internal processes for reviewing merger/amalgamation schemes and making decisions within the stipulated timelines. Establish clear criteria for determining whether a scheme is in the public or creditors' interest.

Key Entities Referenced

Central Government: The primary authority responsible for approving merger and amalgamation schemes under Section 233 of the Companies Act, 2013. Registrar of Companies: An officer appointed by the Central Government to register companies and administer the Companies Act, 2013. Plays a role in reviewing merger/amalgamation schemes and providing objections or suggestions. Official Liquidator: An officer appointed by the Central Government to wind up companies. Plays a role in reviewing merger/amalgamation schemes and providing objections or suggestions. Tribunal: Refers to the National Company Law Tribunal (NCLT), which may be involved in reviewing merger/amalgamation schemes if the Central Government refers the scheme to it under Section 232 of the Companies Act, 2013. Companies Act, 2013: The primary legislation governing companies in India. Section 233 deals with mergers and amalgamations of certain companies. Companies (Compromises, Arrangements and Amalgamations) Rules, 2016: The rules that provide the detailed procedures for mergers, amalgamations, and compromises under the Companies Act, 2013. These rules are amended by the current notification. Form No. CAA.12: The form used for issuing a confirmation order of a merger or amalgamation scheme. Form No. CAA.13: The form used by the Central Government to file an application before the Tribunal, stating objections or opinions on a merger or amalgamation scheme.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-15052023-245885 xxxGIDHxxx CG-DL-E-15052023-245885 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 295] नई ददल्ली, सोमवार, मई 15, 2023/विै ाख 25, 1945 No. 295] NEW DELHI, MONDAY, MAY 15, 2023/VAISAKHA 25, 1945 कारपोरेट काय यमत्रं ालय अजधसचू ना नई ददल्ली,15 मई, 2023 सा.का.जन. 367(अ).—केंद्रीय सरकार, कंपनी अजधजनयम, 2013 (2013 का 18) की धारा 233 के साथ पठित धारा 469 की उपधारा (1) और उपधारा (2) द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, कंपनी (समझौते, िहराव और समामेलन) जनयम, 2016 का और संिोधन करन े के जलए जनम्नजलजखत जनयम बनाती ह,ै अथायत्:- 1. संजिप्त नाम और प्रारंभ.- (1) इन जनयमों का संजिप्त नाम कंपनी (समझौते, िहराव और समामेलन) संिोधन जनयम, 2023 ह।ै (2) य ेजनयम 15 िून, 2023 स ेप्रवृत्त होंगे। 2. कंपनी (समझौते, िहराव और समामेलन) जनयम, 2016 में, जनयम 25 के, उपजनयम (5) और (6) के स्ट्थान पर, जनम्नजलजखत उपजनयम रखे िाएंगे, अथायत्:- (5) िहां केन्द्द्रीय सरकार को धारा 233 की उपधारा (2) के अधीन स्ट्कीम की प्रजत की प्राजप्त के तीस ददनों की अवजध के भीतर कंपनी रजिस्ट्रार और िासकीय समापक से स्ट्कीम पर कोई आपजत्त या सुझाव प्राप्त नहीं होता ह ै और केंद्रीय सरकार का यह मत ह ै दक यह स्ट्कीम लोकजहत में ह ै या लेनदारों के जहत म ें ह ै तो वह उि तीस ददनों की अवजध की समाजप्त के पन्द्द्रह ददनों की अवजध के भीतर, प्ररूप सख्ं या सीएए-12 में जवलय या समामेलन की ऐसी स्ट्कीम का पुजि आदेि िारी कर सकती हैःै 3138 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] परंतु यह दक यदद केंद्रीय सरकार धारा 233 की उपधारा (2) के अधीन इस स्ट्कीम की प्राजप्त के साि ददनों की अवजध के भीतर पुजि आदेि िारी नहीं करती ह ै तो यह माना िाएगा दक स्ट्कीम पर उन्द्ह ें कोई आपजत्त नहीं ह ै और तद्नुसार पुजि आदेि िारी दकया िाएगा। (6) िहां केन्द्द्रीय सरकार को धारा 233 की उपधारा (2) के अधीन स्ट्कीम की प्रजत की प्राजप्त के तीस ददनों की अवजध के भीतर कंपनी रजिस्ट्रार या िासकीय समापक या दोनों से आपजत्तयां या सुझाव प्राप्त हो िाते ह ैंऔर – (क) कंपनी रजिस्ट्रार या िासकीय समापक की ऐसी आपजत्त या सुझाव को स्ट्थायी नहीं माना िाता ह ै और केंद्रीय सरकार का यह मत ह ै दक स्ट्कीम लोकजहत में या लेनदारों के जहत में ह ै तो केंद्रीय सरकार, उपयुयि जनदिषदि तीस ददनों के पश्चात् तीस ददनों की अवजध के भीतर प्ररूप सं. सीएए-12 में जवलय या समामेलन की ऐसी स्ट्कीम के जलए एक पुजि आदेि िारी कर सकती ह।ै (ख) केंद्रीय सरकार का ऐसी आपजत्त या अन्द्यथा के आधार पर यह मत ह ै दक स्ट्कीम लोकजहत म ें या लने दारों के जहत में नहीं ह ै तो वह स्ट्कीम की प्राजप्त के साि ददनों के भीतर इस अजधजनयम की धारा 232 के अधीन स्ट्कीम पर आपजत्त या मत का उल्लेख करत े हुए अजधकरण के समि प्ररूप सं. सीएए-13 म ें अजधकरण के जवचारण हते ु आवेदन फाइल कर सकती ह।ै परंतु यदद केंद्रीय सरकार अजधजनयम की धारा 233 की उपधारा (2) के अधीन स्ट्कीम की प्राजप्त के साि ददनों की अवजध के भीतर खडं (क) के अधीन पुजि आदेि िारी नहीं करती ह ै या खंड (ख) के अधीन कोई आवेदन फाइल नहीं करती ह ैतो यह माना िाएगा दक उसे स्ट्कीम पर कोई आपजत्त नहीं ह ैऔर तद्नुसार पुजि आदेि िारी दकया िाएगा”। [फा. सं. 2/31/सीएए/2013-सीएल.V भाग] मनोि पाण्डेय, संयुि सजचव ठटप्पण : मूल जनयम, अजधसूचना संख्या सा.का.जन. सं. 1134(अ) तारीख 14 ददसंबर, 2016 के भारत के रािपत्र, असाधारण, भाग-II, खंड-3, उपखंड (i) में प्रकाजित दकए गए थे, और अजधसूचना संख्या सा.का.जन. 401(अ) तारीख 30 मई, 2022 द्वारा अजं तम बार संिोजधत दकए गए थ।े MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 15th May, 2023 G.S.R. 367(E).—In exercise of the powers conferred by sub-sections (1) and (2) of section 469 read with section 233 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, namely :- 1. Short title and commencement.‐ (1) These rules may be called the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2023. (2) They shall come into force with effect from 15th day of June, 2023. 2. In the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, for sub-rules (5) and (6) of rule 25, the following sub-rules shall be substituted, namely:- “(5) Where no objection or suggestion is received within a period of thirty days of receipt of copy of scheme under sub-section (2) of section 233, from the Registrar of Companies and Official Liquidator by the Central Government and the Central Government is of the opinion that the scheme is in the public interest or in the interest of creditors, it may, within a period of fifteen days after the expiry of said thirty days, issue a confirmation order of such scheme of merger or amalgamation in Form No. CAA.12: Provided that if the Central Government does not issue the confirmation order within a period of sixty days of the receipt of the scheme under sub-section (2) of section 233, it shall be deemed that it has no objection to the scheme and a confirmation order shall be issued accordingly. (6) Where objections or suggestions are received within a period of thirty days of receipt of copy of scheme under sub-section (2) of section 233 from the Registrar of Companies or Official Liquidator or both by the Central Government and –[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 (a) such objections or suggestions of Registrar of Companies or Official Liquidator, are not sustainable and the Central Government is of the opinion that the scheme is in the public interest or in the interest of creditors, it may within a period of thirty days after expiry of thirty days referred to above, issue a confirmation order of such scheme of merger or amalgamation in Form No. CAA.12. (b) the Central Government is of the opinion, whether on the basis of such objections or otherwise, that the scheme is not in the public interest or in the interest of creditors, it may within sixty days of the receipt of the scheme file an application before the Tribunal in Form No. CAA.13 stating the objections or opinion and requesting that Tribunal may consider the scheme under section 232 of the Act: Provided that if the Central Government does not issue a confirmation order under clause (a) or does not file any application under clause (b) within a period of sixty days of the receipt of the scheme under sub- section (2) of section 233 of the Act, it shall be deemed that it has no objection to the scheme and a confirmation order shall be issued accordingly.”. [F. No. 2/31/CAA/2013 – CL.V Part] MANOJ PANDEY, Jt. Secy. Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification number G.S.R. 1134(E), dated the 14th December, 2016 and last amended, vide notification number G.S.R. 401 (E) dated 30th May, 2022. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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