The rights of a class of shareholders are varied under section 48 with the written consent of the holders of 80% of the issued shares of that class. Holders of 12% of that class did not consent. Within what time and to whom can they seek a remedy?

Correct answer: B) They may apply to the Tribunal within twenty-one days after the consent was given to have the variation cancelled, as they hold not less than 10% of the issued shares of that class

Explanation

Section 48(1) allows variation of class rights with the written consent of holders of not less than three-fourths of the issued shares of that class, or by a special resolution passed at a separate class meeting. Under section 48(2), holders of not less than ten per cent of the issued shares of the class who did not consent may apply to the Tribunal to have the variation cancelled. The application must be made within twenty-one days after the date on which the consent was given or the resolution was passed, not ninety days. Once an application is made, the variation has effect only if and when the Tribunal confirms it.