Section-261 Scheme of revival and rehabilitation

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Section-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).

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