Board directions to protect investors can prohibit cancellation and order divestment of securities after unlawful buy-backs. The Board may, without prejudice to other enforcement including prosecution, issue directions to protect investors by prohibiting cancellation of securities bought back in violation, directing sale or divestment of shares or specified securities acquired in violation, and restraining the company from making a further offer for buy-back; a copy of such direction shall be forwarded to the Registrar of Companies.
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.
Board directions to protect investors can prohibit cancellation and order divestment of securities after unlawful buy-backs.
The Board may, without prejudice to other enforcement including prosecution, issue directions to protect investors by prohibiting cancellation of securities bought back in violation, directing sale or divestment of shares or specified securities acquired in violation, and restraining the company from making a further offer for buy-back; a copy of such direction shall be forwarded to the Registrar of Companies.
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