Corporate membership eligibility for stock exchanges requires director-shareholder majority and unlimited liability; government may permit specified corporations. Amendment prescribes that a company is eligible for election as a stock exchange member only if it is lawfully formed, a majority of its directors are shareholder-members of that exchange, and the directors who are exchange members have unlimited liability; the Central Government may recommend relaxation permitting admission of specified public financial corporations, insurance and development institutions, certain registered companies and subsidiaries engaged in merchant banking or securities dealing.
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.
Corporate membership eligibility for stock exchanges requires director-shareholder majority and unlimited liability; government may permit specified corporations.
Amendment prescribes that a company is eligible for election as a stock exchange member only if it is lawfully formed, a majority of its directors are shareholder-members of that exchange, and the directors who are exchange members have unlimited liability; the Central Government may recommend relaxation permitting admission of specified public financial corporations, insurance and development institutions, certain registered companies and subsidiaries engaged in merchant banking or securities dealing.
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