📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Under which circumstances can the Tribunal order a

    meeting of creditors or members of a company for compromise or arrangement?
    A Only between a company and its creditors Correct Answer Incorrect Answer
    B Only between a company and its members Correct Answer Incorrect Answer
    C Between a company and its creditors or any class of them, or between a company and its members or any class of them Correct Answer Incorrect Answer
    D Only in the case of a company being wound up under the Insolvency and Bankruptcy Code, 2016 Correct Answer Incorrect Answer
    E When directed by the company's board of directors Correct Answer Incorrect Answer

    Solution

    Companies Act Section 230. Power to compromise or make arrangements with creditors and members: (1) Where a compromise or arrangement is proposed— (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, the Tribunal may, on the application of the company or of any creditor or member of the company, or in the case of a company which is being wound up, of the liquidator appointed under this Act or under the Insolvency and Bankruptcy Code, 2016, as the case may be, order a meeting of the creditors or class of creditors, or of the members or class of members, as the case may be, to be called, held and conducted in such manner as the Tribunal directs.

    Practice Next
    More Other Laws and Acts Questions
    ask-question