The MCA has amended the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 to insert a new rule 26A to provide for the process for purchasing minority shareholding under section 236 of the Companies Act 2013 (the “Act”), where such shareholding is held in demat form. For this purpose it has introduced a definition of “corporate action”, to mean any action taken by the company relating to transfer of shares and all the benefits accruing on such shares namely, bonus shares, split, consolidation, fraction shares and right issue to the acquirer. The process to be followed under the new rule is as under:
To refer to the Companies (Compromises, Arrangements and Amalgamations) Second Amendment Rules, 2020 dated 17 December 2020, click here.
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