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

Godavari Milk Producer Company, an erstwhile inter-State co-operative society, plans to re-convert to an inter-State co-operative society. Which statement is correct under the Companies Act, 2013?

The company must apply for registration under the Multi-State Co-operative Societies Act or other applicable law within six months of the Tribunal's sanction, and report it. The order itself has no effect until filed with the Registrar, and the application needs a two-thirds resolution.

  1. AThe Tribunal order takes effect immediately on being passed, before filing with the Registrar
  2. BThe Producer Company must apply for registration under the co-operative law within six months of the Tribunal's sanctionCorrect
  3. CA resolution by a simple majority of members present and voting suffices for the application
  4. DThe Tribunal cannot stay suits against the company while the application is pending

Explanation

Section 378ZS(8) requires application for registration under the co-operative law within six months of sanction. The order has no effect until a certified copy is filed with the Registrar, the member resolution needs two-thirds, and the Tribunal may stay suits.

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