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EFFECT OF TAKEOVER OF MANAGEMENT
The takeover of assets, has following effect:
SHAREHOLDERS CANNOT APPOINT DIRECTORS - After the takeover of assets,
shareholders of company cannot appoint or nominate any director
of the company.
NO RESOLUTION WITHOUT CONSENT OF SECURED CREDITORS - Any resolution
passed by shareholders will be effective only if approved by secured
creditors.
NO PROCEEDING FOR WINDING UP - No proceeding for winding up of
such company or appointment of receiver shall lie in any court,
without the consent of secured creditor.
NO COMPENSATION FOR LOSS OF OFFICE - Any Managing Director or Director
of the borrower shall not be entitled to any compensation for loss
of office or for premature termination of any contract of agreement
with the borrower. However, the MD or director or manager shall
be entitled to any other money receivable, other than compensation.
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