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CS Executive · Company Law and Practice · Members and Shareholders

A variation of the rights of Class A preference shares of Narmada Ltd was approved by a special resolution at a separate class meeting on 5 March. Holders of 12% of the issued Class A shares did not vote in favour. Within how many days from the resolution may they apply to the Tribunal to have the variation cancelled?

They have twenty-one days. Section 48(2) lets holders of at least ten per cent of the class who did not consent apply to the Tribunal within twenty-one days after the resolution was passed, and the variation takes effect only once the Tribunal confirms it.

  1. ASeven days
  2. BFourteen days
  3. CTwenty-one daysCorrect
  4. DThirty days

Explanation

Under section 48(2), holders of not less than ten per cent of the issued shares of the class who did not consent may apply to the Tribunal, and the proviso requires the application within twenty-one days of the resolution or consent. The thirty-day period relates to the company filing the Tribunal's order with the Registrar.

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