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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulatory Approvals of Scheme

Section 264 of the Companies Act, 2013 dealt with implementation of a scheme of revival and rehabilitation of sick companies. A student cites it for a present-day scheme. What is the correct position per the India Code text?

Section 264 is omitted with effect from 15 November 2016, by section 255 and the Eleventh Schedule of the Act. It cannot be relied on for a present scheme. Supervision of implementation of a sanctioned compromise or arrangement is now governed by section 231.

  1. AIt is omitted with effect from 15 November 2016Correct
  2. BIt is in force and applies to all sanctioned schemes
  3. CIt was substituted by section 235 on that date
  4. DIt applies only to companies with paid-up capital above Rs 100 crore

Explanation

The India Code text shows section 264 as omitted by section 255 and the Eleventh Schedule, w.e.f. 15-11-2016. Sections 261 to 263 are likewise omitted. Implementation supervision of a sanctioned compromise or arrangement now rests on section 231.

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