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NOTICE FOR THE MEETING OF CREDITORS UNDER IN A COMPROMISE OR ARRANGEMENT |
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NOTICE FOR THE MEETING OF CREDITORS UNDER IN A COMPROMISE OR ARRANGEMENT |
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Notice of meeting The National Company Law Tribunal (‘Tribunal’ for short) shall order for the conduct of meeting of any class of creditors or classes of creditors or members to be convened. On receipt of the said order a notice, in the Form CAA – 2 shall be issued to each individual creditor or member at the address registered with the company. The notice shall be sent by the Chairperson appointed for the meeting, or, if the Tribunal so directs, by the company (or its liquidator), or any other person as the Tribunal may direct. The notice shall be sent to the creditors or members by registered post or speed post or by courier or by e-mail or by hand delivery or any other mode as directed by the Tribunal to their last known address at least one month before the date fixed for the meeting. The service of notice of meeting shall be deemed to have been effected in case of delivery by post, at the expiration of 48 hours after the letter containing the same is posted. Contents of the notice The notice of the meeting to the creditors and members shall be accompanied by a copy of the scheme of compromise or arrangement. A statement disclosing the following details, if the same are not already included in the said scheme shall also be accompanied-
The notice shall provide that the persons to whom the notice is sent may vote in the meeting either themselves or through proxies or by postal ballot to the adoption of the compromise or arrangement within one month from the date of receipt of such notice: Advertisement The notice of the meeting shall be advertised in Form CAA – 2 in at least one English newspaper and in at least one vernacular newspaper having wide circulation in the State in which the registered office of the company is situated, or such newspapers as may be directed by the Tribunal. The said notice shall be uploaded on the website of company not less than 30 days before the date fixed for the meeting. If the company is a listed company, then the notice shall also be uploaded on the website of SEBI and stock exchanges. If separate meetings of classes of creditors or members are to be held, a joint advertisement for such meetings may be given. Notice to statutory authorities The notice of meeting in Form CAA – 3, accompanying the copy of the scheme and the explanatory statement, shall be sent –
This notice shall be sent to the authorities concerned, after the notice is sent to all creditors and members of the company. The said notice shall be sent by registered post or by speed post or by courier or by hand delivery at the office of the authority. Objections by the Authorities If the above said authorities are having objections in the scheme the same shall be sent to the Tribunal within a period of 30 days from the date of receipt of the said notice. The copy of such representation forwarded to the Tribunal shall be sent to the company. If no representation is received from the authorities concerned it will be presumed that the authorities have no representation to make on the proposed scheme of compromise or arrangement. Objections by members Any objection to the compromise or arrangement shall be made only by persons holding not less than 10% of the shareholding or having outstanding debt amounting to not less than 5% of the total outstanding debt as per the latest audited financial statement.
By: Mr. M. GOVINDARAJAN - September 30, 2024
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