Disproportionate voting rights: companies must equalise excess share voting rights or seek court direction if consensus fails. Existing companies must reduce any share voting rights that exceed the voting entitlement of equally paid equity shares to parity within one year; until conformity holders cannot exercise excess votes on specified resolutions such as director appointments or variations to managing directors' agreements. If class consent is unobtainable, the company must seek a Court order within one month after the year to prescribe compliant measures, and failure to comply attracts a statutory penalty. The Central Government may exempt pre-1949 share issues wholly or partly in defined public or company or creditor interests, subject to parliamentary laying.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Disproportionate voting rights: companies must equalise excess share voting rights or seek court direction if consensus fails.
Existing companies must reduce any share voting rights that exceed the voting entitlement of equally paid equity shares to parity within one year; until conformity holders cannot exercise excess votes on specified resolutions such as director appointments or variations to managing directors' agreements. If class consent is unobtainable, the company must seek a Court order within one month after the year to prescribe compliant measures, and failure to comply attracts a statutory penalty. The Central Government may exempt pre-1949 share issues wholly or partly in defined public or company or creditor interests, subject to parliamentary laying.
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