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TMI BlogCORPORATE RESTRUCTURING - REVIVAL & RESTRUCTURING OF SICK COMPANIESX X X X Extracts X X X X X X X X Extracts X X X X ..... funds required for meeting replenishment and much needed modernization and up gradation programmes Technological obsolescence Sweeping changes across the industry Political and economic factors Change in consumer behaviour Lack of timely government support Mismanagement by directors Diversion and misapplication of funds Reckless investments in other businesses Disproportionate investments Reasons for Industrial Sickness A) Internal Causes 1) Project related - under estimation of project cost, non availability of critical information having a vital bearing on the project, delayed project implementation and resultant cost escalation 2) Human resource related poor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial company, has become a sick industrial company, the Board of directors of such company shall make a reference to the Tribunal and prepare a scheme of its revival and rehabilitation and submit the same to the Tribunal along with an application containing such particulars as may be prescribed for determination of the measures which may be adopted with respect to such company: If the Tribunal appoints an operating agency in order to conduct an enquiry that a company has become a sick industrial company, then the industrial agency is required to prepare and submit a schedule in respect of referred company by providing the following measures: A) Financial reconstruction B) Proper management of sick industrial company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and pass orders for distribution in accordance with the provisions of section 529A , and other provisions of this Act. Without prejudice to the other provisions contained in this Act, the winding up of a company shall, as far as may be, conclude within one year from the date of the order made by Tribunal Penalty for certain offences Whoever violates the provisions of any scheme, or any order, of the Tribunal or the Appellate Tribunal or makes a false statement or gives false evidence to the Tribunal or the Appellate Tribunal, and attempts to tamper the records of reference or appeal filed under this Act, he shall be punishable with simple imprisonment for a term which may extend to three years or shall be liable to fine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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