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CS Executive · Company Law and Practice · Introduction to Company Law

The Tribunal sanctions the re-conversion of Anand Growers Producer Company to a co-operative society. Which statement is correct about what must follow?

The Tribunal's order has no effect until a certified copy is filed with the Registrar of Companies. The company must also apply for registration as a co-operative society under the relevant law within six months of sanction and file a report, as section 378ZS provides.

  1. AThe order takes effect immediately from the date of sanction, and no filing is needed
  2. BThe order has no effect until a certified copy is filed with the Registrar, and the company must apply for registration under the co-operative law within six months of sanctionCorrect
  3. CThe order takes effect once creditors approve it, and registration under co-operative law may be done at any time
  4. DThe company must apply for registration under co-operative law within one year of sanction, with no filing with the Registrar

Explanation

Section 378ZS(4) makes the order ineffective until a certified copy is filed with the Registrar. Section 378ZS(8) requires application for registration under the relevant co-operative law within six months of sanction, with a report to the Tribunal and Registrars.

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