Body corporates from border sharing countries can’t enter into a compromise or arrangement

Notification no. G.S.R. 401(E) dated 30.05.2022

The MCA has notified the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2022. Now, a company/body corporate incorporated in a country sharing a land border with India is required to submit a declaration in Form CAA-16 at the time of making an application for compromise or arrangement.

In Form CAA-16, the following details need to be mentioned –

(a) Details of the transferee company/body corporate

(b) Details of the transferor company/body corporate.

(c) A declaration from authorized representative on behalf of the company/body corporate to the effect that

• the company or body corporate is not required to obtain prior approval under the FEM (Non-Debt Instruments) Rules, 2019 or

• where the company or body corporate is required to obtain prior approval under the FEM (Non-Debt Instruments) Rules, 2019, the same has been obtained and is enclosed herewith the form

(d) List of Enclosures to be attached with the form

Click Here To Read The Full Notification