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

Under a takeover offer by Ganga Holdings Ltd, holders of shares are asked to transfer shares of Yamuna Ltd. Ganga already holds 10% by value, which is excluded. Holders of at least nine-tenths in value of the remaining shares approve within four months of the offer. By when must Ganga give notice to dissenting shareholders that it wishes to acquire their shares?

Ganga Holdings must give notice within two months after the expiry of the four months following its offer. Section 235(1) allows this once holders of at least nine-tenths in value of the shares involved, excluding those it already holds, have approved within four months.

  1. AWithin two months after the expiry of the four monthsCorrect
  2. BWithin one month of the offer
  3. CWithin four months after the expiry of the two months
  4. DAny time without limit

Explanation

Section 235(1) requires approval within four months of the offer by nine-tenths in value of shares involved, excluding those already held by the transferee or its nominee or subsidiaries. Notice to dissenters may then be given within two months after those four months expire. The other periods are invented or reversed.

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