Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Fast Track Mergers

Meru Textiles Ltd, a small company, plans a fast track merger with Tapi Yarns Ltd. Which creditor-related requirement applies under section 233 but is handled differently from the usual court-convened meeting route?

Section 233(1)(d) requires approval by a majority representing nine-tenths in value of the creditors or class of creditors, in a meeting convened by the company on twenty-one days' notice along with the scheme, or otherwise approved in writing. No Tribunal-convened meeting is involved.

  1. AApproval by a majority representing nine-tenths in value of creditors at a meeting convened on twenty-one days' notice, or approval in writingCorrect
  2. BApproval by three-fourths in number of creditors only
  3. CNo creditor approval is needed
  4. DApproval by two-thirds in value of creditors at a meeting called by the Tribunal

Explanation

Section 233(1)(d) requires a majority representing nine-tenths in value of creditors or class of creditors, at a meeting on twenty-one days' notice with the scheme, or otherwise approved in writing. The other options misstate the threshold or the convenor.

Did you get it right without looking?

One question tells you little. A timed set on Fast Track Mergers shows your real accuracy, how long you take and where you lose marks.

Practise Fast Track MergersFree diagnostic mock

More Fast Track Mergers questions