SKP Business Alert
Volume 8 Issue 8 | 9 December 2016
MCA Notifies Corporate Restructuring Provisions 
Enforcing the powers conferred by sub-section (3) of section 1 of the Companies Act, 2013, the Central Government (Ministry of Corporate Affairs) vide commencement notification dated 7 December 2016 has appointed 15 December 2016 as the date on which, inter alia, following provisions of the Companies Act, 2013 shall come into force: 
  • Section 48: Variation of shareholders’ rights
  • Section 66: Reduction of share capital
  • Section 230 (except sub-section (11) & (12)), sections 231 to 233, and sections 235 to 240: Compromise, arrangement and amalgamations
  • 434 (1) (c): All proceedings of Companies Act, 1956 with reference to compromise, arrangement, winding up, etc. pending with the High Court to be transferred to the National Company Law Tribunal (NCLT).
Also, vide rule 3 of Companies Amendment Rules (Transfer of Pending Proceedings), 2016, the Central Government has stated that all proceedings under the Companies Act, including proceedings relating to arbitration, compromise, arrangements and reconstruction (other than proceedings related to winding-up on the date the rule comes into force) shall stand transferred to the Benches of NCLT exercising respective territorial jurisdiction.


SKP's comments
With this notification, from 15 December 2016, corporate restructuring related matters including mergers, demergers, capital reductions, etc. will be filed before and dealt by NCLT exercising respective territorial jurisdiction. The Central Government has also notified rules for the transfer of certain pending proceedings before the respective High Courts to the concerned tribunal. It has been specifically clarified that proceedings in arbitration, compromise, arrangements and reconstruction which are reserved for orders for allowing or otherwise shall not be transferred. With this notification, now a substantial portion of the Companies Act, 2013, except few sections, stands notified. It is expected that rules relating to mergers and amalgamations will also be notified in the coming days as being a corollary to notification of section.

19 Adi Marzban Path | Ballard Estate | Fort | Mumbai 400 001 | India
+91 22 6730 9000 | |

Mumbai | Pune | Hyderabad | New Delhi | Gurgaon | Chennai | Bengaluru
Member of Nexia International
This alert contains general information which is provided on an “as is” basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This alert should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this alert is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

Whilst every effort has been made to ensure the accuracy of the information contained in this alert, the same cannot be guaranteed. We accept no liability or responsibility to any person for any loss or damage incurred by relying on the information contained in this alert.

SKP Business Consulting LLP is a member firm of the "Nexia International" network. Nexia International Limited does not deliver services in its own name or otherwise. Nexia International Limited and the member firms of the Nexia International network (including those members which trade under a name which includes the word NEXIA) are not part of a worldwide partnership. For the full Nexia International disclaimer, please visit

© 2016 SKP Business Consulting LLP. All rights reserved.