Section 261 of Companies Act, 2013

261. Scheme of revival and rehabilitation

(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).

Complete: companies-act-2013