The Companies Act, 2013
Chapter-XIX Revival and Rehabilitation of Sick Companies
Section 261: Scheme of revival and rehabilitation.
1. Omitted by the Eleventh Schedule (Sec. 255) to the Insolvency and Bankruptcy Code, 2016, w.e.f. 15.11.2016[S.O. 3453(E) dated 15.11.2016]. Prior to omission, the section stood as under:
“261. (1) 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.
(2) A scheme prepared in relation to any sick company under sub-section (1) may provide for any one or more of the following measures, namely:—
(a) the financial reconstruction of the sick company;
(b) the proper management of the sick company by any change in, or by taking over, the management of such company;
(c) the amalgamation of—
(i) the sick company with any other company; or
(ii) any other company with the sick company;
(d) takeover of the sick company by a solvent company;
(e) the sale or lease of a part or whole of any asset or business of the sick company;
(f) the rationalisation of managerial personnel, supervisory staff and workmen in accordance with law;
(g) such other preventive, ameliorative and remedial measures as may be appropriate;
(h) repayment or rescheduling or restructuring of the debts or obligations of the sick company to any of its creditors or class of creditors;
(i) such incidental, consequential or supplemental measures as may be necessary or expedient in connection with or for the purposes of the measures specified in clauses (a) to (h).”
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