Section 354: Meetings to ascertain wishes of creditors or contributories
This section is for the Tribunal to ascertain the wishes of creditors or contributories in the winding up of a company.
The section, clause by clause
What the section says
In plain terms
(1)In all matters relating to the winding up of a company, the Tribunal may— (a) have regard to the wishes of creditors or contributories of the company, as proved to it by any sufficient evidence;
The Tribunal can consider the wishes of a company's creditors or contributories when winding up the company, and can direct meetings to be held to find out their wishes, with the power to appoint a chairman for the meeting.
(1)(b)if it thinks fit for the purpose of ascertaining those wishes, direct meetings of the creditors or contributories to be called, held and conducted in such manner as the Tribunal may direct; and
(1)(c)appoint a person to act as chairman of any such meeting and to report the result thereof to the Tribunal.
(2)While ascertaining the wishes of creditors under sub-section (1), regard shall be had to the value of each debt of the creditor.
When finding out the wishes of creditors, the value of each debt is taken into account.
(3)While ascertaining the wishes of contributories under sub-section (1), regard shall be had to the number of votes which may be cast by each contributory.
When finding out the wishes of contributories, the number of votes each contributory can cast is taken into account.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs.by Act 29 of 2020, s. 51, for sub-section (2) (w.e.f. 21-12-2020).
- 2. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 357 (w.e.f. 15-11-2016).
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.