Differential voting rights: issuance permitted subject to eligibility, shareholder approval and disclosure requirements. Companies may issue shares with differential voting rights if they satisfy conditions including distributable profits for the preceding three financial years, timely filing of annual accounts and returns, discharge of deposit, debenture and dividend obligations, absence of specified statutory convictions, no defaults on investor grievance redressal, authorization in the Articles of Association, and shareholder approval (postal ballot for listed companies); notices must disclose voting rates, conversion prohibitions, entitlement to bonus and rights shares, and that such shares shall not exceed a 25% limit of issued capital, and a statutory register of differential rights must be maintained.
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.
Differential voting rights: issuance permitted subject to eligibility, shareholder approval and disclosure requirements.
Companies may issue shares with differential voting rights if they satisfy conditions including distributable profits for the preceding three financial years, timely filing of annual accounts and returns, discharge of deposit, debenture and dividend obligations, absence of specified statutory convictions, no defaults on investor grievance redressal, authorization in the Articles of Association, and shareholder approval (postal ballot for listed companies); notices must disclose voting rates, conversion prohibitions, entitlement to bonus and rights shares, and that such shares shall not exceed a 25% limit of issued capital, and a statutory register of differential rights must be maintained.
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 
