Power to acquire shares of dissenting shareholders enables compulsory purchase on the same terms as approving shareholders. Where a scheme transferring shares to a transferee company is approved by the required majority, the transferee company may notify dissenting shareholders that it will acquire their shares; unless the Tribunal orders otherwise on a timely application, the transferee company is bound to acquire those shares on the same terms as approving shareholders. The transferee company must present the notice, instrument of transfer and consideration to the transferor company, which shall register the transferee as holder and inform dissenting shareholders; sums received are to be held in trust in a separate account and disbursed within sixty days. Modifications apply to pre-commencement offers.
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.
Power to acquire shares of dissenting shareholders enables compulsory purchase on the same terms as approving shareholders.
Where a scheme transferring shares to a transferee company is approved by the required majority, the transferee company may notify dissenting shareholders that it will acquire their shares; unless the Tribunal orders otherwise on a timely application, the transferee company is bound to acquire those shares on the same terms as approving shareholders. The transferee company must present the notice, instrument of transfer and consideration to the transferor company, which shall register the transferee as holder and inform dissenting shareholders; sums received are to be held in trust in a separate account and disbursed within sixty days. Modifications apply to pre-commencement offers.
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