In last post, we discussed sick companies. Now, we will discuss revival and rehabilitation.
SCHEME OF REVIVAL AND REHABILITATION (SECTION 261):
The company administrator shall prepare or cause to be prepared a scheme of revival and rehabilitation of the sick company after considering the draft scheme filed along with the application under Section 254.
Posted in Chapter XIX -CA2013, Companies Act 2013
Tagged committee of creditors, Companies Act 2013, Companies Bill 2012, Company Administrator, CorpGov, CorpLaw, Corporate Governance, Corporate Law, India, Interim Administrator, Legal Reforms, Ministry of corporate affairs, Reforms, Revival and Rehabilitation, Scheme of Revival and Rehabilitation, Sick company, The Rehabilitation and Insolvency Fund, Winding Up
This chapter may and will replace the provisions of Sick Industrial Companies (Special Provisions) Act, 1985. We may note this chapter has much wider impact then earlier Act of 1985.
SICK COMPANIES (SUB – SECTION 1 OF SECTION 253):
Where on a demand by the secured creditors of a company representing fifty percent or more of its outstanding amount of debt, the company has failed to pay the debt within a period of thirty days of the service of the notice of demand or to secure or compound it to the reasonable satisfaction of the creditors, any secured creditor may file an application to the Tribunal in the prescribed manner along with the relevant evidence for such default, non-repayment or failure to offer security or compound it, for a determination that the company be declared as a sick company.
Posted in Chapter XIX -CA2013, Companies Act 2013
Tagged committee of creditors, Companies Act 2013, Companies Bill 2012, Company Administrator, CorpGov, CorpLaw, Corporate Governance, Corporate Law, India, Interim Administrator, Legal Reforms, Ministry of corporate affairs, Reforms, Revival and Rehabilitation, Sick company
This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.
AishMGhrana 