Skip to content

CMA Final · Corporate and Economic Laws · Company Formation and Conversion

A Producer Company that is an erstwhile inter-State co-operative society wishes to apply to the Tribunal for re-conversion to an inter-State co-operative society through a members' resolution. Which statement is correct?

The application route through members requires a resolution in general meeting passed by not less than two-thirds of Members present and voting. The alternative route is a request by creditors representing three-fourths value of total creditors. The application then goes to the Tribunal.

  1. AThe resolution must be passed by not less than two-thirds of the Members present and voting in a general meetingCorrect
  2. BThe resolution must be passed by a simple majority of all Members on the register
  3. CThe resolution must be passed by three-fourths of the creditors by value
  4. DNo resolution is required; the Registrar may direct the re-conversion

Explanation

Under section 378ZS(1)(a), the application follows a general meeting resolution by not less than two-thirds of Members present and voting. Three-fourths value of creditors relates to the alternative route of a creditors' request under clause (b), so it is not the members' resolution requirement.

Did you get it right without looking?

One question tells you little. A timed set on Company Formation and Conversion shows your real accuracy, how long you take and where you lose marks.

Practise Company Formation and ConversionFree diagnostic mock

More Company Formation and Conversion questions