High Court Allows Dispensing Shareholder Meetings in Scheme of Arrangement

The High Court of Gujarat, under the Honorable Smt. Justice Abhilasha Kumari, allowed the Applicant's application for dispensing with the meetings of Equity Shareholders, Preference Shareholders, Secured Creditors, and Unsecured Creditors for considering the Scheme of Arrangement. The Court granted dispensation based on the unanimous consent of shareholders, absence of Secured Creditors, and the assurance that the rights and interests of Unsecured Creditors would not be compromised under the proposed Scheme.

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Issues Involved: Application for dispensing with meetings of Equity Shareholders, Preference Shareholders, Secured Creditors, and Unsecured Creditors for considering a Scheme of Arrangement.

Equity Shareholders Meeting:
The Applicant sought dispensation of the Equity Shareholders meeting as all shareholders had consented to the proposed Scheme. The Chartered Accountant certified the list of Equity Shareholders, supporting the dispensation. The Court accepted the request and dispensed with the meeting.

Preference Shareholders Meeting:
Similar to the Equity Shareholders, the Applicant requested dispensation of the Preference Shareholders meeting due to unanimous consent. The Chartered Accountant certified the list of Preference Shareholders, further supporting the dispensation. The Court granted the request and dispensed with the meeting.

Secured Creditors Meeting:
Since there were no Secured Creditors, the Applicant requested dispensation of their meeting. The Chartered Accountant confirmed the absence of Secured Creditors, leading to the Court dispensing with the meeting.

Unsecured Creditors Meeting:
The Applicant sought dispensation of the Unsecured Creditors meeting, stating that their rights and interests would not be affected by the Scheme, with all liabilities being sufficiently covered. The Chartered Accountant certified the current status of Unsecured Creditors, supporting the request. The Court agreed with the Applicant's submission and dispensed with the meeting.

Publication of Notice:
The Court ordered the dispensation of publication of notice in the Official Gazette.

In conclusion, the High Court of Gujarat, under the Honorable Smt. Justice Abhilasha Kumari, allowed the Applicant's application for dispensing with the meetings of Equity Shareholders, Preference Shareholders, Secured Creditors, and Unsecured Creditors for considering the Scheme of Arrangement. The Court granted dispensation based on the unanimous consent of shareholders, absence of Secured Creditors, and the assurance that the rights and interests of Unsecured Creditors would not be compromised under the proposed Scheme.

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