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CS Executive · Setting Up of Business, Industrial and Labour Laws · Conversion of Business Entities

The Tribunal sanctioned the re-conversion of Gramin Producer Company, an erstwhile inter-State co-operative society, to an inter-State co-operative society. The company has not yet filed the certified copy of the order with the Registrar. What is the effect under the Companies Act, 2013?

The order has no effect until a certified copy of it has been filed with the Registrar. Section 378ZS(4) makes filing a condition for effectiveness. A fine for default under sub-section (6) is a separate consequence, and the six-month period relates to applying for co-operative registration.

  1. AThe order takes effect from the date of the Tribunal's sanction regardless of filing
  2. BThe order has no effect until a certified copy is filed with the RegistrarCorrect
  3. CThe order takes effect after six months automatically
  4. DThe order is valid but the company is penalised with a fine only

Explanation

Section 378ZS(4) states that an order of the Tribunal has no effect until a certified copy has been filed with the Registrar. Default in complying attracts a fine under sub-section (6), but the order is not effective merely because it was passed. The six-month period in sub-section (8) relates to applying for registration under the co-operative law, not to the order's effect.

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