https://www.taxtmi.com/caselaws?id=337747 The Tribunal upheld the penalty of Rs. 1 crore imposed on the appellants for violating regulation 23(1) of the Takeover Regulations, 1997 by entering into an MoU encumbering company assets without shareholder approval during the offer period. The Tribunal rejected arguments that the MoU was not legally enforceable, finding that its terms created binding obligations. Independent directors were held liable for their involvement in authorizing the exploration of property development and failing to oppose the MoU execution. The Tribunal deemed the penalty proportionate given the seriousness of the violation and lack of justification for the appellants' actions. en-us Thu, 15 Dec 2016 00:00:00 +0530 Tue, 17 Jan 2017 08:15:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337747 The Tribunal upheld the penalty of Rs. 1 crore imposed on the appellants for violating regulation 23(1) of the Takeover Regulations, 1997 by entering into an MoU encumbering company assets without shareholder approval during the offer period. The Tribunal rejected arguments that the MoU was not legally enforceable, finding that its terms created binding obligations. Independent directors were held liable for their involvement in authorizing the exploration of property development and failing to oppose the MoU execution. The Tribunal deemed the penalty proportionate given the seriousness of the violation and lack of justification for the appellants' actions. Case-Laws Companies Law Thu, 15 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337747