The Ministry of Corporate Affairs vide its notification dated 1st February 2021 has published the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2021 to further amend the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.
The Amendment is brought under Rule 25(1A) which notifies a scheme of merger or amalgamation under section 233 of the Act which may be entered into between any of the class of companies, namely two or more start-up companies; or one or more start-up companies with one or more small companies.
Further, an explanation for the term start-up company has been provided which states that “Start-up company” means a private company incorporated under the Companies Act, 2013 and recognized as such in accordance with notification number G.S.R. 127 (E), dated the February 19, 2019 issued by the Department for Promotion of Industry and Internal Trade.
