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2011 (1) TMI 1218 - HIGH COURT CALCUTTAWhether ordering a meeting of shareholders is mandatory before any compromise or arrangement is considered or agreed upon by members of a company? Held that:- A meeting is to held, in my opinion, when there is plurality of members or creditors to be bound by it. If there is one preference shareholder or one creditor there is no possibility of a meeting to bind him. He takes his own decision. But if his decision is to bind another group, then that decision has to be approved by them. Say there is one creditor. He enters into an arrangement with the company. There is no scope for any meeting. But, if that decision, affects members it has to be placed before them for approval, in a meeting. In this circumstance the application for sanction is allowed.
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