https://www.taxtmi.com/caselaws?id=99319 Allotment of unissued equity shares must comply with Article 23 of the articles of association by first offering shares to existing members in proportion to their holdings. A general notice that does not specify each member's entitlement does not meet that requirement. Rectification of the register under Section 155 of the Companies Act, 1956 remains available where the issues can be determined summarily; affected allottees and the company are necessary parties, not every shareholder. The allotment process was also challenged for excluding a director from the board meetings approving and confirming the issue. The stated outcome was invalidation of the allotment, rectification of the share register, and reissue in accordance with Article 23. en-us Fri, 18 Jul 1975 00:00:00 +0530 Wed, 25 Jan 2012 18:36:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99319 Allotment of unissued equity shares must comply with Article 23 of the articles of association by first offering shares to existing members in proportion to their holdings. A general notice that does not specify each member's entitlement does not meet that requirement. Rectification of the register under Section 155 of the Companies Act, 1956 remains available where the issues can be determined summarily; affected allottees and the company are necessary parties, not every shareholder. The allotment process was also challenged for excluding a director from the board meetings approving and confirming the issue. The stated outcome was invalidation of the allotment, rectification of the share register, and reissue in accordance with Article 23. Case-Laws Companies Law Fri, 18 Jul 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99319