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CS Executive · Company Law and Practice · Members and Shareholders

The Tribunal confirmed a variation of class rights in Sagar Metals Ltd after dissenting holders applied under Section 48. The order is dated 10 April. What is the company required to do?

The company must file a copy of the Tribunal's order with the Registrar within thirty days of the date of the order. The decision is binding on the shareholders, so no fresh consent is needed, and no newspaper publication is required by this section.

  1. AFile a copy of the order with the Registrar within thirty days of the date of the orderCorrect
  2. BFile a copy of the order with SEBI within twenty-one days
  3. CSeek fresh approval of three-fourths of the class, since the Tribunal's decision is not binding
  4. DPublish the order in two newspapers within seven days

Explanation

Section 48(3) makes the Tribunal's decision binding on the shareholders, so no fresh approval is needed. Section 48(4) requires the company to file a copy of the order with the Registrar within thirty days of the date of the order.

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