How to participate in a scheme-of-arrangement event on Zerodha

Tue, 12 May 2026 00:00:00 +0000

A scheme of arrangement is a court-approved corporate restructuring mechanism available under Sections 230 to 232 of the Companies Act, 2013. It is the umbrella legal structure under which mergers, demergers, capital reductions, amalgamations, and complex business reorganisations are implemented in India. The scheme requires approval from:

The shareholders of the company (by a majority in number representing three-fourths in value of those voting).
The creditors (if creditors are affected).
The National Company Law Tribunal (NCLT), which gives the final sanction.

Once the NCLT order is obtained and filed with the Registrar of Companies (RoC), the scheme is legally effective and binding on all shareholders, including those who voted against it. Individual shareholder participation during the scheme process (voting) is, however, important and a legal right.

Section 230 on WebNotes

How to participate in a scheme-of-arrangement event on Zerodha