Skip to content

CS Executive · Setting Up of Business, Industrial and Labour Laws · Conversion of Business Entities

Himalaya Agro Producer Company, an erstwhile inter-State co-operative society, wants to re-convert to an inter-State co-operative society. As per the provision on re-conversion, which route is available for making the application to the Tribunal?

The Producer Company may apply to the Tribunal after passing a resolution in general meeting by not less than two-thirds of its Members present and voting, or on request by creditors representing three-fourths value of total creditors, under Section 378ZS(1).

  1. AA resolution passed in general meeting by not less than two-thirds of Members present and votingCorrect
  2. BA resolution passed by a simple majority of the Board of Directors only
  3. CA request by creditors representing one-half value of total creditors
  4. DA request by the Registrar of Companies on his own motion

Explanation

Section 378ZS(1) permits the application after a general meeting resolution by not less than two-thirds of Members present and voting, or on request by creditors representing three-fourths value of total creditors. One-half creditors' value is insufficient, and a board resolution or Registrar's request is not a listed route.

Did you get it right without looking?

One question tells you little. A timed set on Conversion of Business Entities shows your real accuracy, how long you take and where you lose marks.

Practise Conversion of Business EntitiesFree diagnostic mock

More Conversion of Business Entities questions