Corporate action transfers of dematerialised minority shares: statutory procedure mandates notice, depository transfer, and payment to shareholders. The amendment defines corporate action to cover transfers and attendant share benefits and inserts Rule 26A prescribing procedures for purchase of minority shareholding in demat form under section 236. The company must verify demat holdings, serve and publish notice of a cut-off date, notify the depository with prescribed declarations, authorise an officer to coordinate transfers, effect depository transfers into a designated DEMAT account on the cut-off date, immediately disburse consideration to minority shareholders after deducting and paying stamp duty, and then instruct transfer of shares to the acquirer; specified exceptions apply.
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Provisions expressly mentioned in the judgment/order text.
Corporate action transfers of dematerialised minority shares: statutory procedure mandates notice, depository transfer, and payment to shareholders.
The amendment defines corporate action to cover transfers and attendant share benefits and inserts Rule 26A prescribing procedures for purchase of minority shareholding in demat form under section 236. The company must verify demat holdings, serve and publish notice of a cut-off date, notify the depository with prescribed declarations, authorise an officer to coordinate transfers, effect depository transfers into a designated DEMAT account on the cut-off date, immediately disburse consideration to minority shareholders after deducting and paying stamp duty, and then instruct transfer of shares to the acquirer; specified exceptions apply.
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