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

While sanctioning a scheme for Yamuna Cement Ltd, the Tribunal feels one clause may cause practical problems. Under section 231, what can it do?

The Tribunal may make modifications in the compromise or arrangement, or give directions on any matter, as it considers necessary for proper implementation. Section 231(1)(b) allows this when making the order or at any time afterwards.

  1. AOnly reject the whole scheme
  2. BMake modifications in the scheme as it considers necessary for proper implementationCorrect
  3. CRefer the clause to shareholders for a fresh vote in every case
  4. DDelegate implementation entirely to the Registrar

Explanation

Section 231(1)(b) allows the Tribunal to give directions on any matter or make modifications it considers necessary for proper implementation, at the time of the order or later. It is not confined to accepting or rejecting the scheme.

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