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TMI Blog1952 (6) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... g of the members of the company in liquidation for considering a proposal for reconstructing the company. The company in liquidation is the Gothuruthi Educational & Industrial Co. Ltd., which was incorporated under the Cochin Companies Act VI of 1080 in 1096. It was registered under section 32 of the Act as a company started for promoting charity. The primary object of the company was to propagate and foster education, industry, commerce and charity and for that purpose to collect funds by conducting kuries, etc. It had no share capital. According to the memorandum of association every member was liable to the extent of Rs. 500 but the period of liability was limited to 24 years from the date of the starting of the company. It was also prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the permission of court to convene a meeting of the members of the company to consider the proposal. According to the appellant, there are 190 members in the company while according to the respondents there are only 138 members. 74 members opposed the petition. Their objections are that the reconstruction of the company would be against the interests of the members and that it would revive their personal liability which has been extinguished after the expiry of 24 years from the date of the starting of the company. The court below rejected the petition of the official liquidator on the ground that the reconstruction of the company would involve the placing of the surplus assets in court at the disposal of the original members of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the company." The scheme proposed by the official liquidator may or may not be accepted by the members of the company. According to the petition of the liquidator the meeting is to be convened "for the purpose of considering and, if thought fit, approving, with or without modification, a scheme or arrangement given in the schedule" submitted along with the petition. Objections relating to the scheme will have to be discussed at the meeting. The fact that 74 members have now opposed the scheme does not necessarily mean that some of them may not change their views when all aspects of the question are discussed in the meeting. In view of the fact that a large sum of money belonging to the company is in court and that there are no subsisting l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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