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CS Executive · Company Law and Practice · Compromise, Arrangement and Amalgamations - Concepts

A scheme of amalgamation sanctioned by the Tribunal reached Zenith Ltd on 1 March. Within what time must Zenith file a certified copy of the order with the Registrar under section 232(5), and what is the initial penalty under section 232(8) for default by the company and each officer in default?

The certified copy must be filed with the Registrar within thirty days of receiving it, and default attracts an initial penalty of Rs 20,000 on the company and each officer in default. A continuing default adds Rs 1,000 per day after the first, subject to a Rs 3 lakh cap.

  1. AWithin 30 days of receipt of the certified copy; Rs 20,000Correct
  2. BWithin 60 days of the order; Rs 20,000
  3. CWithin 30 days of receipt of the certified copy; Rs 1,00,000
  4. DWithin 90 days of receipt of the certified copy; Rs 1,000

Explanation

Section 232(5) requires filing within thirty days of receipt of the certified copy of the order. Under section 232(8), default attracts a penalty of Rs 20,000 on the company and each officer in default, plus Rs 1,000 per day of continuing failure after the first, capped at Rs 3 lakh.

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