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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulatory Approvals of Scheme

Under a share-transfer scheme, Ashoka Holdings Ltd (transferee) has obtained the required approval from the shareholders of Bharat Dyes Ltd. On 10 September it gives notice to a dissenting shareholder, Mr Iyer, that it wishes to acquire his shares under Section 235. By what date must Mr Iyer apply to the Tribunal if he wants to resist the acquisition?

Mr Iyer must apply to the Tribunal within one month from the date the notice was given, so by 10 October. If he does not, and the Tribunal does not order otherwise, the transferee company is entitled and bound to acquire his shares on the scheme terms.

  1. A10 October, being within one month from the date of noticeCorrect
  2. B10 November, being within two months from the date of notice
  3. C10 December, being within four months from the date of notice
  4. D10 September of the next year, being within one year

Explanation

Section 235(2) makes the transferee bound to acquire the shares unless the dissenting shareholder applies to the Tribunal within one month from the date the notice was given and the Tribunal orders otherwise. Notice was given on 10 September, so the application must be made by 10 October. The two-month and four-month periods in the section relate to other steps.

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