https://www.taxtmi.com/caselaws?id=106343 Prior Reserve Bank permission was not treated as essential to sustain an earlier allotment and transfer of shares to non-residents, because ex post facto regularisation was recognised and the company could not retrospectively nullify the transaction after a long delay. By contrast, a later issue of shares to the managing director, carried out without notice to the majority shareholders and with the effect of transferring control and reducing them to a minority, was held to lack probity and bona fide corporate purpose. Such allotments were treated as oppressive and set aside, with rectification directed to restore the ownership structure to its pre-oppression position. en-us Tue, 28 May 2002 00:00:00 +0530 Tue, 13 Mar 2012 17:31:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106343 Prior Reserve Bank permission was not treated as essential to sustain an earlier allotment and transfer of shares to non-residents, because ex post facto regularisation was recognised and the company could not retrospectively nullify the transaction after a long delay. By contrast, a later issue of shares to the managing director, carried out without notice to the majority shareholders and with the effect of transferring control and reducing them to a minority, was held to lack probity and bona fide corporate purpose. Such allotments were treated as oppressive and set aside, with rectification directed to restore the ownership structure to its pre-oppression position. Case-Laws Companies Law Tue, 28 May 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106343