Skip to content

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

Himalaya Steels Ltd's sanctioned arrangement cannot be implemented satisfactorily, with or without modifications, and the company is unable to pay its debts as per the scheme. What may the Tribunal do under section 231?

The Tribunal may order the winding up of the company, and that order is deemed to be made under section 273. This applies where the scheme cannot be implemented satisfactorily, with or without modifications, and the company is unable to pay its debts as per the scheme.

  1. AOnly extend the time for payment under the scheme
  2. BMake an order for winding up the company, deemed to be made under section 273Correct
  3. CRemove the directors and appoint an administrator for the scheme
  4. DCancel the sanction retrospectively and restore the pre-scheme position automatically

Explanation

Section 231(2) applies when the Tribunal is satisfied that the scheme cannot be implemented satisfactorily with or without modifications and the company cannot pay its debts per the scheme. It may then order winding up, and that order is deemed to be made under section 273. The other options describe powers not given by this section.

Did you get it right without looking?

One question tells you little. A timed set on Compromise, Arrangement and Amalgamations - Concepts shows your real accuracy, how long you take and where you lose marks.

Practise Compromise, Arrangement and Amalgamations - ConceptsFree diagnostic mock

More Compromise, Arrangement and Amalgamations - Concepts questions