CORPORATE RESTRUCTURING - REVIVAL & RESTRUCTURING OF SICK COMPANIES

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..... ed for meeting replenishment and much needed modernization and up gradation programmes * Technological obsolescence * Sweeping changes across the industry * Political and economic factors * Change in consumer behaviour * Lack of timely government support * Mismanagement by directors * Diversion and misapplication of funds * Reckless investments in other businesses * Disproportionate investments Reasons for Industrial Sickness A) Internal Causes 1) Project related - under estimation of project cost, non availability of critical information having a vital bearing on the project, delayed project implementation and resultant cost escalation 2) Human resource related - poor quality management, excessive commitment to non ap .....

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..... on and submit the same to the Tribunal along with an application containing such particulars as may be prescribed for determination of the measures which may be adopted with respect to such company: If the Tribunal appoints an operating agency in order to conduct an enquiry that a company has become a sick industrial company, then the industrial agency is required to prepare and submit a schedule in respect of referred company by providing the following measures: A) Financial reconstruction B) Proper management of sick industrial company by change in, or takeover of C) The amalgamation of the sick industrial company or vice-versa The Tribunal may finalize the scheme on the suggestion of the operating agency and thereafter formally sanc .....

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..... clude within one year from the date of the order made by Tribunal Penalty for certain offences Whoever violates the provisions of any scheme, or any order, of the Tribunal or the Appellate Tribunal or makes a false statement or gives false evidence to the Tribunal or the Appellate Tribunal, and attempts to tamper the records of reference or appeal filed under this Act, he shall be punishable with simple imprisonment for a term which may extend to three years or shall be liable to fine not exceeding ten lakh rupees. No court shall take cognizance of any offence under except on a complaint in writing of an officer of the Tribunal or the Appellate Tribunal or any officer of the Central Government authorized by it or any officer of an operat .....

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