Chapter III - SUBSTANTIAL ACQUISITION OF SHARES OR VOTING RIGHTS IN AND ACQUISITION OF CONROL OVER A LISTED COMPANY (From Regulation 10 to Regulation 29A)
Bail out takeovers require lead institution oversight to protect minority shareholders through structured rehabilitation and acquisition terms. Regulation 30 requires the lead institution approving a rehabilitation scheme to ensure compliance, appraise financial viability, assess revival funding and prepare a rehabilitation package prioritising minority shareholder protection, good management, effective revival and transparency; the scheme must disclose any change in management and may provide for acquisition by purchase, exchange or both, aiming to eliminate erstwhile promoter shareholding where new promoters acquire control. 'Financially weak company' is defined by accumulated losses eroding a substantial portion of opening net worth.
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.
Bail out takeovers require lead institution oversight to protect minority shareholders through structured rehabilitation and acquisition terms.
Regulation 30 requires the lead institution approving a rehabilitation scheme to ensure compliance, appraise financial viability, assess revival funding and prepare a rehabilitation package prioritising minority shareholder protection, good management, effective revival and transparency; the scheme must disclose any change in management and may provide for acquisition by purchase, exchange or both, aiming to eliminate erstwhile promoter shareholding where new promoters acquire control. "Financially weak company" is defined by accumulated losses eroding a substantial portion of opening net worth.
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