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1. What is Form CAA 10 ? 

This form contains the format in which declaration of solvency has to be filed by the company in pursuant to section 233(1) (a) and rule 25 of The Companies (Compromises, Arrangements and Amalgamations) Rules, 2016. As per the provision a scheme of merger or amalgamation may be entered into between two or more small companies or between a holding company and its wholly-owned subsidiary company or such other class or classes of companies as may be prescribed. Each of the companies involved in the merger files a declaration of solvency, in the CAA 10 with the Registrar of the place where the registered office of the company is situated; 

2. Why is it important? 

a. It is a statutory requirement

b. It helps the interested party in knowing that the company is insolvent enough to carry out the scheme 

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