Compromise, Arrangement, and Amalgamation (CAA)
When businesses face financial stress, restructuring, expansion, or merger needs, the Companies Act offers powerful solutions through Compromise, Arrangement, and Amalgamation (CAA). These tools help companies negotiate with creditors, reorganize business structures, settle disputes, or merge seamlessly for growth. Whether it’s reducing liabilities, protecting stakeholder interests, or creating strategic synergy, CAA ensures stability and continuity. Many companies, however, struggle to understand the legal steps, NCLT procedure, and documentation required. That’s where Aarthika guides you with clarity, compliance, and smooth execution from start to finish.
Documents Required
- Latest financial statements
- List of creditors & shareholders
- Valuation report (if applicable)
- Draft Scheme of Compromise / Arrangement / Amalgamation
- Board Resolution approving the scheme
- Auditor’s certificate
- Notices & explanatory statements
- Affidavits, petitions, and NCLT forms
- Chartered Accountant & Company Secretary certificates
FAQs
The company, its creditors, shareholders, or liquidator (during winding-up) can apply to NCLT.
Yes. Every scheme must be sanctioned by NCLT after ensuring fairness to stakeholders.
Yes. Meetings are usually conducted where approval from majority in number and 75% in value is required.
Generally 3–9 months depending on complexity, objections, and NCLT schedule.
NCLT can stop oppressive acts, remove directors, regulate company affairs, cancel share issues, or even order recovery of misused funds.