The process involving merger and demerger of companies compromises with creditors or any other scheme of arrangement for capital or corporate restructuring, are normally long drawn with multiple regulatory processes and compliances involving huge costs and time. Section 233 of the Companies Act, 2013 (the Act) brings a big relief to small companies, holding and wholly owned subsidiaries (eligible companies) by fast tracking the entire process without any need to approach to NCLT. A small company shall mean a private company with paid-up share capital up to Rs.50,00,000/- and turnover up to Rs.2,00,00,000/-.
………. Read more