Restrictions on share transfers: Tribunal may void transfers, suspend voting and impose sanctions to protect public interest. The Tribunal may order time-limited restrictions on shares and debentures to ascertain relevant facts, including voiding transfers, prohibiting issuance, suspending voting rights, preventing further issuances and barring payments except in liquidation. It may also restrain voting or void transfers where a transfer likely alters board composition to the prejudice of public interest, and it can vary or rescind orders with service obligations. Breach attracts criminal penalties and fines, companies and defaulting officers are punishable for unlawful issuance, and prosecutions require central government consent.
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.
Restrictions on share transfers: Tribunal may void transfers, suspend voting and impose sanctions to protect public interest.
The Tribunal may order time-limited restrictions on shares and debentures to ascertain relevant facts, including voiding transfers, prohibiting issuance, suspending voting rights, preventing further issuances and barring payments except in liquidation. It may also restrain voting or void transfers where a transfer likely alters board composition to the prejudice of public interest, and it can vary or rescind orders with service obligations. Breach attracts criminal penalties and fines, companies and defaulting officers are punishable for unlawful issuance, and prosecutions require central government consent.
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