Sick Industrial Companies (Special Provisions) Act, 1985

Section - 23 - Loss of fifty per cent net worth by industrial companies

CHAPTER IV

PROCEEDINGS IN CASE OF POTENTIALLY SICK INDUSTRIAL COMPANIES MISFEASANCE PROCEEDINGS, APPEALS AND MISCELLANEOUS

Loss of fifty per cent net worth by industrial companies.

23. (1) If the accumulated losses of an industrial company, as at the end of any financial year (hereinafter referred to as the relevant financial year) have resulted in erosion of fifty per cent, or more of its peak net worth during the immediately preceding [four] financial years,-

(a)

the company shall, within a period of sixty days from the date (hereinafter referred to as the relevant date) of finalisation of the duly audited accounts of the company for the relevant financial year-

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(i)	-	report the fact of such erosion to the Board; and
(ii)	-	hold a general meeting of the shareholders of the company for considering such erosion;