Companies Act, 2017

PART-IX

PREVENTION OF OPPRESSION AND MIS-MANAGEMENT

Companies Act, 2017 PART-IX PREVENTION OF OPPRESSION AND MIS-MANAGEMENT From: 2023-11-01 - To: 0000-00-00 292. Rehabilitation of sick public sector companies- (1) The provisions of this section shall apply to a public sector company which is facing financial or operational problems and is declared as a sick company by 1[ ] the Federal Government. (2) After a company is declared as a sick company under sub-section (1), any institution, authority, committee or person authorised by 1[concerned Minister-in-Charge of] the Federal Government in this behalf may draw up a plan for the rehabilitation, reconstruction and reorganisation of such company, hereafter in this section referred to as the rehabilitation plan. (3) Without prejudice to the generality of the foregoing provision, the rehabilitation plan, may, in addition to any other matter, provide for all or any of the following- - (a) reduction of capital so as to provide for all or any of the matters referred to in section 89 or reconstruction, compromise, amalgamation and other arrangements so as to provide for all or any of the matters referred to in section 279 or section 282 or section 285; (b) alteration of share capital and variation in the rights and obligations of shareholders or any class of shareholders; (c) alteration of loan structure, debt rescheduling or conversion into shares carrying special rights or other relief and modification in the terms and conditions in respect of outstanding debts and liabilities of the company or any part of such loan, debts or liabilities or variation in the rights of the creditors or any class of them including any security pertaining thereto; (d) acquisition or transfer of shares of the company on the specified terms and conditions; (e) issue of further capital including shares carrying special rights and obligations relating to voting powers, dividend, redemption or treatment on winding up; (f) removal and appointment of directors (including the chief executive) or other officers of the company; (g) amendment, modification or cancellation of any existing contract; or (h) alteration of the memorandum or articles or changes in the accounting policy and procedure. (4)…