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CS Professional · Strategic Management and Corporate Finance · Raising of Funds from Debt and Procedural Aspects

Where a Government considers it necessary in the public interest, it directs conversion of debentures it holds into shares of a company, though the issue terms had no conversion option. The company finds the conversion terms unacceptable. What remedy does the Act give?

The company may appeal to the Tribunal within sixty days from the date the Government's conversion order is communicated. The Tribunal hears both the company and the Government and passes such order as it deems fit. The order is therefore not final.

  1. AAppeal to the Tribunal within sixty days of the communication of the orderCorrect
  2. BAppeal to the Tribunal within thirty days of the order
  3. CPass a special resolution rejecting the order within ninety days
  4. DNo remedy exists because the order is final

Explanation

The proviso allows the company to appeal to the Tribunal within sixty days from communication of the order. The Tribunal hears the company and the Government and passes the order it considers fit. Thirty days is the figure for the rights offer period, not this appeal.

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