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

Orion Foods Ltd obtained a Tribunal order sanctioning a compromise before the Companies Act, 2013 commenced, and implementation problems have now arisen. Which statement is correct as per section 231(3)?

Section 231 applies, so far as may be, to a company whose compromise or arrangement was sanctioned by an order made before the commencement of the Companies Act, 2013. Section 231(3) extends the Tribunal's supervisory, directing and winding up powers to such earlier orders as well.

  1. ASection 231 applies, so far as may be, to such a company as wellCorrect
  2. BSection 231 cannot apply because the order predates the Act
  3. COnly section 231(2) applies and not section 231(1)
  4. DSection 231 applies only if the company re-applies for sanction

Explanation

Section 231(3) states that the provisions of the section shall, so far as may be, also apply to a company in respect of which an order sanctioning a compromise or arrangement was made before the commencement of the Act. So pre-commencement orders are covered.

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