Wednesday, February 04, 2009

Companies Act_Practical Problems_53

Giveth Ltd. supplies material to Taketh Ltd. and the latter fails to pay. Hence, Giveth Ltd. files a petition for winding-up of Taketh Ltd. and serves a notice quoting purchase order and invoice which Taketh Ltd. denies. Can Giveth Ltd. enforce the winding-up ?

Companies Act_Practical Problems_52

The Company Law Board has inter alia the power to order the purchase of shares or interests of any members of the company by other members thereof or by the company under section 402. Since section 77A deals with the matter of buy-back of the company’s own shares, do you think that the implementation of the order of the Company Law Board requiring the company to buy shares of certain members of the company, will need compliance with the requirements of section 77A. Substantiate your answer.