Tag Archives: Tribunal

REMOVAL OF NAME OF COMPANIES


Life always started to death. Company can be created and wind up. Sometimes, Idea of a company conceives, but fail to take life.

POWER OF REGISTRAR TO REMOVE NAME (SECTION 248):

Notice for Removal of Name by the Registrar:

The Registrar may send a notice to the company and all its director of his intention to remove the name of the company from the register of companies, when the Registrar has reasonable cause to believe –

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OTHER ISSUES IN COMPROMISE, ARRANGEMENT, MERGER AND AMALGAMATION


These schemes of corporate reconstruction have many inbuilt complex issues. The law has to care about all these complexities.

SHARES OF DISSENTING SHAREHOLDERS (SECTION 235):

Where a scheme or contract involving the transfer of shares or any class of shares in a transferor company to a transferee company has been approved by the shareholders or class of shareholders, the transferee company may give notice to any dissenting shareholder that it desires to acquire his share. The conditions are –

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MERGER OR AMALGAMATION


We will discuss merger and amalgamation in this post

MERGER AND AMALGAMATION (SECTION 232):

The Tribunal, Merger, amalgamation or demerger is proposed in the application of compromise and arrangement under Section 230 (i) of the company, or (ii) of the creditors, or (iii) of the members of the company (iv) of the liquidator of company under liquidation, may order the meeting (A) Creditors or class of creditors, or (B) of the members or class of members, (x) to be called, (y) held and (z) conducted in the manner directed by the Tribunal.

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COMPROMISE AND ARRANGEMENT


In this and next few post, we will discuss legal principles contained in Chapter XV of the Act.

POWER TO COMPROMISE AND ARRANGEMENT (SECTION 230):

A compromise or arrangement may be –

(a)  between a company and its creditors or any class of them; or

(b) between a company and its members or any class of them.

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INSPECTOR’S REPORT AND THEREAFTER


Consequence of any investigation is report. The Report is just a milestone. We will discuss the journey ahead in this post.

Inspector’s Report (Section 223):

In inspector shall submit all interim reports, if any, and final report to the Central Government.

Every report shall be in writing or printed as per direction of the Central Government.

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PROCEDURE RELATED TO INQUIRY AND INVESTIGATIONS


We are going to deal corporate frauds, genre of crime committed by most educated, polished, professional, greedy white colour criminals. You may find these people to come out on technical or procedural grounds even after committed in all black and whites.

HUMAN INSPECTOR (SECTION 215):

No firm, body corporate or other association shall be appointed as an inspector.

This leaves only human being to be appointed as inspector.

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SERIOUS FRAUD INVESTIGATION OFFICE AND INSPECTORS


Presently, the Serious Fraud Investigation Office (SFIO) is an organisation working under Ministry of Corporate Affairs. The office was established by the Government of India Resolution dated 2003 to investigate corporate frauds. The “About us” page of its website as on date read as under:

“The SFIO is a multi-disciplinary organization under Ministry of Corporate Affairs, consisting of experts in the field of accountancy, forensic auditing, law, information technology, investigation, company law, capital market and taxation for detecting and prosecuting or recommending for prosecution white-collar crimes/frauds. The SFIO will normally take up for investigation only such cases, which are characterized by:

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