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

Kaveri Plastics Pvt Ltd, an unlisted company, made a takeover offer through a scheme. Minority shareholder Rohan feels the offer is unfair to him. What remedy does section 230 provide for him?

An aggrieved party in the takeover offer of an unlisted company can apply to the Tribunal in the prescribed manner, and the Tribunal may pass such order as it deems fit. The section does not route this grievance to SEBI or the Registrar.

  1. AHe may apply to the Tribunal, which may pass such order as it deems fitCorrect
  2. BHe may apply to SEBI, which must cancel the offer
  3. CHe may apply to the Registrar, who must reverse the offer within thirty days
  4. DHe has no remedy since the scheme was approved by members

Explanation

Section 230(12) lets an aggrieved party apply to the Tribunal for grievances on the takeover offer of companies other than listed companies, in the prescribed manner. The Tribunal may pass such order as it deems fit. SEBI and the Registrar are not named for this remedy.

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