- (1.) The only question raised in this application is whether the Central Government can object to the sanctioning of the arrangement and/or scheme because of the discrepancy in the share exchange ratio when in a shareholders' meeting the entire scheme has been approved unanimously.
(2.) At the time of moving of the application under Section 391 of the Companies Act, 1956 which provides where a compromise or arrangement is proposed between a company and its creditors or class of them or between a company and its members or class of them the Court may order meeting of the creditors or class of creditors or members or class of members to be held and continued in the manner as may be directed. The Court ordered the holding of the meeting of the shareholders and appointed the chairperson. Pursuant to the said order the meeting was convened and the chairperson submitted the report as well.
(3.) In an application under Section 394 of the said Act containing the report of the chairperson the Court directed the service of the copy of the said application upon the Central Government.;