MCA vide Notification No. G.S.R.773 dated 17/12/2020 has issued Companies (Compromises, Arrangements and Amalgamations) Second Amendment Rules, 2020 thereby further amending Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 wherein:
- In Rule 2(1), the following new clause (e) have been inserted: “(e) Corporate action means any action taken by thecompany 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”.
- A new rule 26A- ‘Purchase of minority shareholding held in Demat form’ has been inserted.
The said Notification can be accessed through the following link: MCA_Notif_GSR.773(E)_17.12.2020_Co.(Compromises, Arrangements and Amalgamations) 2nd Amendment Rules,2020