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CS Professional · Corporate Restructuring, Valuation and Insolvency · Fast Track Mergers

Under section 233, how may the creditors' approval to a fast track merger scheme be obtained?

Creditors' approval needs a majority representing nine-tenths in value of the creditors or class of creditors, either at a meeting convened on twenty-one days' notice accompanied by the scheme, or by written approval, as provided in section 233(1)(d).

  1. ABy majority representing nine-tenths in value of creditors at a meeting called on twenty-one days' notice with the scheme, or otherwise approved in writingCorrect
  2. BBy three-fourths in number of creditors at a meeting on fourteen days' notice
  3. CBy a simple majority in value of creditors in writing only
  4. DBy Tribunal order dispensing with creditors' consent

Explanation

Section 233(1)(d) requires a majority representing nine-tenths in value of the creditors or class of creditors, at a meeting convened with twenty-one days' notice along with the scheme, or approval in writing.

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