https://www.taxtmi.com/caselaws?id=97448 Section 153B of the Indian Companies Act, 1913 was upheld as a valid statutory restriction on a shareholder's right to dispose of shares, because share rights are created and regulated by company law and may be limited by a majority-approved scheme. The Madras HC held that compulsory acquisition of dissenting shareholders' shares was not unconstitutional merely because it bound minorities to the majority decision. The court further held that it would refuse the statutory acquisition only on proof of fraud, deception, oppression, unconscionability, manifest unfairness, or other sufficient cause. On the facts, no such basis was shown, and the transferee company was permitted to acquire the petitioners' shares. en-us Thu, 25 Oct 1956 00:00:00 +0530 Mon, 16 Jan 2012 17:16:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97448 Section 153B of the Indian Companies Act, 1913 was upheld as a valid statutory restriction on a shareholder's right to dispose of shares, because share rights are created and regulated by company law and may be limited by a majority-approved scheme. The Madras HC held that compulsory acquisition of dissenting shareholders' shares was not unconstitutional merely because it bound minorities to the majority decision. The court further held that it would refuse the statutory acquisition only on proof of fraud, deception, oppression, unconscionability, manifest unfairness, or other sufficient cause. On the facts, no such basis was shown, and the transferee company was permitted to acquire the petitioners' shares. Case-Laws Companies Law Thu, 25 Oct 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97448