Restriction on corporate share transfers: government may block or require acquisition to prevent prejudicial board changes. Bodies corporate holding ten per cent or more of a company's equity must intimate the Central Government before transferring such shares with prescribed particulars. The Central Government may prohibit a transfer if it would likely alter board composition prejudicially, or direct transfer to itself or a specified government corporation for specified industries. Where directed, the transferee pays the market value in cash, determined by exchange quotation, agreement or court; payment is due forthwith or, if disputed, partly forthwith with any balance within thirty days after court determination. The Government must act within sixty days of intimation or the restriction ceases.
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Restriction on corporate share transfers: government may block or require acquisition to prevent prejudicial board changes.
Bodies corporate holding ten per cent or more of a company's equity must intimate the Central Government before transferring such shares with prescribed particulars. The Central Government may prohibit a transfer if it would likely alter board composition prejudicially, or direct transfer to itself or a specified government corporation for specified industries. Where directed, the transferee pays the market value in cash, determined by exchange quotation, agreement or court; payment is due forthwith or, if disputed, partly forthwith with any balance within thirty days after court determination. The Government must act within sixty days of intimation or the restriction ceases.
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