Court approves Shalby Limited's Scheme of Arrangement without shareholder meetings The court admitted the petition by Shalby Limited for sanction of a Composite Scheme of Arrangement involving companies, dispensing with the requirement ...
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Court approves Shalby Limited's Scheme of Arrangement without shareholder meetings
The court admitted the petition by Shalby Limited for sanction of a Composite Scheme of Arrangement involving companies, dispensing with the requirement of convening meetings of shareholders and creditors. The court directed the petitioner to send individual notices to secured creditors and scheduled the petition for final hearing. Notice was ordered to be published in newspapers, and notice to the Central Government was directed to be sent. Publication in the Official Gazette was dispensed with, allowing direct service in addition to the normal mode of service.
Issues: Petition for sanction of Composite Scheme of Arrangement between companies - Dispensing with requirement of convening meetings of shareholders and creditors - Admission of petition - Directions for final hearing and notices.
Analysis: The judgment pertains to a petition filed by Shalby Limited seeking sanction of a Composite Scheme of Arrangement involving two transferor companies and the petitioner transferee company along with their respective shareholders. The court noted that the requirement of convening meetings of equity shareholders, preference shareholders, secured creditors, and unsecured creditors was dispensed with in a previous order dated 3rd May, 2016. The court directed the petitioner company to send individual notices to the secured creditors. The court then admitted the petition and scheduled it for final hearing on 22nd June, 2016. Notice of the petition was ordered to be published in specified newspapers, and notice to the Central Government was directed to be sent in compliance with section 394(A) of the Companies Act, 1956 through the Regional Director, Ministry of Corporate Affairs. The publication of the notice in the Official Gazette was dispensed with, and direct service was permitted in addition to the normal mode of service.
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