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CS Executive · Company Law and Practice · Compromise, Arrangement and Amalgamations - Concepts

Under Section 230, the Tribunal may dispense with calling a meeting of a class of creditors if the creditors confirm the scheme by affidavit. What minimum value of such creditors must agree?

The Tribunal may dispense with the meeting where creditors holding at least ninety per cent in value agree to the scheme and confirm it by affidavit. The seventy-five per cent figure applies to voting at a meeting.

  1. AAt least 51% in value
  2. BAt least 75% in value
  3. CAt least 90% in valueCorrect
  4. D100% in number

Explanation

Section 230(9) lets the Tribunal dispense with a creditors' meeting where creditors or the class, having at least ninety per cent value, agree and confirm by affidavit. The 75% figure is the voting majority in value at a meeting under sub-section (6), not the threshold for dispensing with it.

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