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CS Professional · Corporate Restructuring, Valuation and Insolvency · Types of Corporate Restructuring

After the Tribunal orders a meeting, Rudra Steels Ltd sends notice of its Section 230 scheme to the income-tax authorities, RBI, SEBI, the Registrar and the Official Liquidator. By when must these authorities make representations, and what happens otherwise?

The authorities must make representations within thirty days from receipt of the notice. If they do not, Section 230(5) presumes they have no representations to make on the proposals, and the scheme proceeds without their objections.

  1. AWithin 15 days, failing which the scheme is deemed rejected
  2. BWithin 30 days of receipt, failing which it is presumed they have no representations to makeCorrect
  3. CWithin 60 days, failing which the Tribunal must refer the scheme to the Central Government
  4. DWithin one month, failing which they must be heard only through the Registrar

Explanation

Section 230(5) requires notice with documents to these authorities and says representations must be made within thirty days of receipt of the notice. Otherwise it is presumed they have no representations. The one-month period in 230(4) concerns voting by creditors and members, not regulators.

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