CMA Intermediate · Business Laws and Ethics · Rights of Shareholders
The holders of 12% of the issued preference shares of a class did not consent to a variation of that class's rights, which was otherwise validly approved on 1 March. Within how many days of the consent or resolution may they apply to the Tribunal to have the variation cancelled?
They must apply within twenty-one days after the date the consent was given or the resolution was passed. The 12% dissenting holders meet the ten per cent minimum, and the variation has no effect until the Tribunal confirms it.
- AFourteen days
- BTwenty-one daysCorrect
- CThirty days
- DSixty days
Explanation
Section 48(2) lets holders of not less than ten per cent of the issued shares of the class who did not consent apply to the Tribunal. The proviso requires the application within twenty-one days of the consent or resolution. Thirty days is the period for filing the Tribunal's order with the Registrar, not for applying.
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