Government amended the Companies (Compromises, Arrangements and Amalgamations) Rule, 2016 in Interest of Minority Shareholders
Ministry of Corporate Affairs has amended the Companies (Compromises, Arrangements and Amalgamations) Rule, 2016 via inserting a new Rule 26 A under the Companies (Compromises, Arrangements and Amalgamations) Second Amendment Rule, 2020 for transparent and swift acquisition of Demat shareholding of Minority dissenting Shareholders under section 236 of the Companies Act, 2013.
The notification of MCA explained detailed procedures to be followed by the Company and the acquirer to ensure payment against such acquisition without delay. Verification of Shareholder(s) details within fixed period of time after receiving payment from the Acquirer, Notice to such Shareholder(s), Newspaper Publication of such action, intimation to Depository for transfer of Shares to the Company, Effect of stay orders of Courts & Tribunals etc. are the main points of the said notification.
