https://www.taxtmi.com/caselaws?id=198671 The Company Law Board dismissed the petition under Section 399 of the Companies Act due to insufficient shareholding, as the petitioners collectively held less than 10% of the company's capital. The alleged issue of shares was found to comply with statutory provisions and was made for a bona fide purpose to benefit the company. However, the petitioners were granted the liberty to file a separate petition under Section 237 for further investigation into the company's affairs. Compliance with legal requirements and the genuine intent behind share issuances were emphasized in the decision. en-us Mon, 05 Apr 1999 00:00:00 +0530 Wed, 07 Feb 2018 11:34:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=198671 The Company Law Board dismissed the petition under Section 399 of the Companies Act due to insufficient shareholding, as the petitioners collectively held less than 10% of the company's capital. The alleged issue of shares was found to comply with statutory provisions and was made for a bona fide purpose to benefit the company. However, the petitioners were granted the liberty to file a separate petition under Section 237 for further investigation into the company's affairs. Compliance with legal requirements and the genuine intent behind share issuances were emphasized in the decision. Case-Laws Companies Law Mon, 05 Apr 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=198671