https://www.taxtmi.com/caselaws?id=110766 Further issue of capital by a private company is exempt from the proportional offer procedure under Section 81(1) and (2), but remains governed by its Articles of Association and the general provisions regulating Board powers. Where Article 9 requires shareholder sanction in a general meeting before further shares are allotted, the Board cannot allot shares without that approval. Article 9 is not inconsistent with the private-company exemption under Section 81(3), as it validly imposes an internal approval requirement. The allotment made without convening a general meeting or obtaining the required sanction was therefore wrongful, illegal and void ab initio, and was set aside. en-us Mon, 13 Mar 2006 00:00:00 +0530 Wed, 18 Apr 2012 15:27:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110766 Further issue of capital by a private company is exempt from the proportional offer procedure under Section 81(1) and (2), but remains governed by its Articles of Association and the general provisions regulating Board powers. Where Article 9 requires shareholder sanction in a general meeting before further shares are allotted, the Board cannot allot shares without that approval. Article 9 is not inconsistent with the private-company exemption under Section 81(3), as it validly imposes an internal approval requirement. The allotment made without convening a general meeting or obtaining the required sanction was therefore wrongful, illegal and void ab initio, and was set aside. Case-Laws Companies Law Mon, 13 Mar 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110766