Skip to content

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

Mehta Foods Ltd's scheme of arrangement was sanctioned by the Tribunal and includes a takeover offer. The scheme also needs to treat dissenting shareholders. Which statement matches section 230?

The Tribunal's order can provide for other matters it thinks necessary to implement the scheme, including an exit offer to dissenting shareholders. It is not a compulsory book-value buy-back, and the sanctioned scheme still binds dissenting members of the class.

  1. AThe Tribunal's order may provide for other necessary matters including an exit offer to dissenting shareholdersCorrect
  2. BThe Tribunal must always order a buy-back of dissenters' shares at book value
  3. CDissenting shareholders are not bound by the sanctioned scheme
  4. DAn exit offer is permitted only for listed companies

Explanation

Section 230(7)(e) allows the order to include such other matters, including exit offer to dissenting shareholders, as the Tribunal considers necessary to implement the scheme. There is no compulsory book value buy-back. A sanctioned scheme binds all members of the class under section 230(6), so dissenters are bound.

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