S. Jaykishan

Chartered Accountants

Section 233 of the Companies Act, 2013 A conundrum?

Section 233 of the Companies Act, 2013 – a conundrum?

– By CA Vivek Newatia
– By CS Shreya Jain

In light of the changes in the Indian economy, the instances of corporate restructuring have significantly increased to save the companies from tumbling down further. The authors in this write up have made an attempt to analyse the intricacies of one such restructuring, viz. fast-track merger as provided under Section 233 of the Companies Act, 2013.

Fast track merger is an alternate and swifter route to restructure companies, however, not every kind of entity can undergo the said route. The following entities are eligible to undergo this method –

  1. Two or more small companies;
  2. Holding and its wholly owned subsidiary;
  3. Two or more start-up companies and
  4. One or more start-up company with one or more small company.

This write-up was previously published with taxmann.

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