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Rule 6Chapter 34

Notice of meeting

(2)

The notice shall be sent by the Chairperson appointed for the meeting, or, if the Tribunal so directs, by the company (or its liquidator), or any other person as the Tribunal may direct, by registered post or speed post or by courier or by email or by hand delivery or any other mode as directed by the Tribunal to their last known address at least one month before the date fixed for the meeting.

Explanation

– It is hereby clarified that the service of notice of meeting shall be deemed to have been effected in case of delivery by post, at the expiration of forty eight hours after the letter containing the same is posted.

(3)

The notice of the meeting to the creditors and members shall be accompanied by a copy of the scheme of compromise or arrangement and a statement disclosing the following details of the compromise or arrangement, if such details are not already included in the said scheme:-

(i)

details of the order of the Tribunal directing the calling, convening and conducting of the meeting:-

(a)

date of the Order;

(b)

date, time and venue of the meeting.

(ii)

details of the company including:

(a)

Corporate Identification Number (CIN) or Global Location Number (GLN) of the company;

(b)

Permanent Account Number (PAN);

(c)

name of the company;

(d)

date of incorporation;

(e)

type of the company (whether public or private or one person company);

(f)

registered office address and e-mail address;

(g)

summary of main object as per the memorandum of association; and main business carried on by the company;

(h)

details of change of name, registered office and objects of the company during the last five years;

(i)

name of the stock exchange (s) where securities of the company are listed, if applicable;

(j)

details of the capital structure of the company including authorised, issued, subscribed and paid up share capital; and

(k)

names of the promoters and directors along with their addresses.

(iii)

if the scheme of compromise or arrangement relates to more than one company, the fact and details of any relationship subsisting between such companies who are parties to such scheme of compromise or arrangement, including holding, subsidiary or of associate companies;

(iv)

the date of the board meeting at which the scheme was approved by the board of directors including the name of the directors who voted in favour of the resolution, who voted against the resolution and who did not vote or participate on such resolution;

(v)

explanatory statement disclosing details of the scheme of compromise or arrangement including:-

(a)

parties involved in such compromise or arrangement;

(b)

in case of amalgamation or merger, appointed date, effective date, share exchange ratio (if applicable) and other considerations, if any;

(c)

summary of valuation report (if applicable) including basis of valuation and fairness opinion of the registered valuer, if any, and the declaration that the valuation report is available for inspection at the registered office of the company;

(d)

details of capital or debt restructuring, if any;

(e)

rationale for the compromise or arrangement;

(f)

benefits of the compromise or arrangement as perceived by the Board of directors to the company, members, creditors and others (as applicable);

(g)

amount due to unsecured creditors.

(vi)

disclosure about the effect of the compromise or arrangement on:

(a)

key managerial personnel;

(b)

directors;

(c)

promoters;

(d)

non-promoter members;

(e)

depositors;

(f)

creditors;

(g)

debenture holders;

(h)

deposit trustee and debenture trustee;

(i)

employees of the company:

(vii)

Disclosure about effect of compromise or arrangement on material interests of directors, Key Managerial Personnel (KMP) and debenture trustee.

Explanation

– For the purposes of these rules it is clarified that-

(a)

the term ‘interest’ extends beyond an interest in the shares of the company, and is with reference to the proposed scheme of compromise or arrangement.

(b)

the valuation report shall be made by a registered valuer, and till the registration of persons as valuers is prescribed under section 247 of the Act, the valuation report shall be made by an independent merchant banker who is registered with the Securities and Exchange Board or an independent chartered accountant in practice having a minimum experience of ten years.

(viii)

investigation or proceedings, if any, pending against the company under the Act.

(ix)

details of the availability of the following documents for obtaining extract from or for making or obtaining copies of or for inspection by the members and creditors, namely:

(a)

latest audited financial statements of the company including consolidated financial statements;

(b)

copy of the order of Tribunal in pursuance of which the meeting is to be convened or has been dispensed with;

(c)

copy of scheme of compromise or arrangement;

(d)

contracts or agreements material to the compromise or arrangement;

(e)

the certificate issued by Auditor of the company to the effect that the accounting treatment, if any, proposed in the scheme of compromise or arrangement is in conformity with the Accounting Standards prescribed under Section 133 of the Companies Act, 2013; and

(f)

such other information or documents as the Board or Management believes necessary and relevant for making decision for or against the scheme;

(x)

details of approvals, sanctions or no-objection(s), if any, from regulatory or any other governmental authorities required, received or pending for the proposed scheme of compromise or arrangement.

(xi)

a statement to the effect that the persons to whom the notice is sent may vote in the meeting either in person or by proxies, or where applicable, by voting through electronic means.

Explanation

– For the purposes of this rule, disclosure required to be made by a company shall be made in respect of all the companies, which are part of the compromise or arrangement.

Notes, amendments & references (2)

Notice of meeting. — (1) Where a meeting of any class or classes of creditors or members has been directed to be convened, the notice of the meeting pursuant to the order of the Tribunal to be given in the manner provided in subsection (3) of section 230 of the Act shall be in Form No. CAA.2 and shall be sent individually to each of the creditors or members.

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