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

Ananya Textiles Ltd, an unlisted company, proposes a scheme of compromise that also includes a takeover offer for its shares. Under the official text of section 230, in what manner is such a takeover offer made?

A compromise or arrangement may include a takeover offer, and the offer is made in the manner prescribed under the rules. The section does not give the Registrar a decision role or make Competition Commission approval a condition of the offer.

  1. AIn the manner prescribed, as the compromise or arrangement may include a takeover offerCorrect
  2. BOnly through a postal ballot of all members without any Tribunal involvement
  3. CIn the manner decided by the Registrar of Companies on a case-to-case basis
  4. DOnly if the offer is approved by the Competition Commission of India

Explanation

Section 230(11) provides that any compromise or arrangement may include a takeover offer made in such manner as may be prescribed. It does not hand the process to the Registrar or make CCI approval a condition. Postal ballot without Tribunal is also not what the section says.

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