Trust for odd-lot share disposal encourages companies to appoint independent trustees to consolidate and sell shareholders' odd lots. Companies are advised to establish a voluntary trust mechanism whereby an independent trustee, unconnected with management, receives only the company's odd lot shares from investors, consolidates them into marketable parcels, engages recognised brokers to sell without manipulating market rates, and remits sale proceeds less brokerage and service charges to the original holders; the trustee may be advanced initial funds to be reimbursed, must keep daily books open to Registrar scrutiny, and companies must monitor trustees and direct investor complaints to the Investor Protection Cell or local Registrar.
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.
Trust for odd-lot share disposal encourages companies to appoint independent trustees to consolidate and sell shareholders' odd lots.
Companies are advised to establish a voluntary trust mechanism whereby an independent trustee, unconnected with management, receives only the company's odd lot shares from investors, consolidates them into marketable parcels, engages recognised brokers to sell without manipulating market rates, and remits sale proceeds less brokerage and service charges to the original holders; the trustee may be advanced initial funds to be reimbursed, must keep daily books open to Registrar scrutiny, and companies must monitor trustees and direct investor complaints to the Investor Protection Cell or local Registrar.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
