https://www.taxtmi.com/caselaws?id=358438 Contractual exit arrangements may impose substantive obligations to procure share transfers, identify investors and facilitate payment of an agreed exit amount. Where these duties are independently expressed, transfer of remaining shares need not depend on prior identification of investors. Director-interest contract restrictions under the Companies Act, 1956 do not automatically invalidate a mutual exit arrangement between individuals; invalidity depends on whether the transaction falls within the provision's prohibitory scope and requires the prescribed approvals. Individual liability under an arbitral award may be assessed separately from the company-related contract restrictions. en-us Fri, 06 Apr 2018 00:00:00 +0530 Thu, 12 Apr 2018 07:39:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=358438 Contractual exit arrangements may impose substantive obligations to procure share transfers, identify investors and facilitate payment of an agreed exit amount. Where these duties are independently expressed, transfer of remaining shares need not depend on prior identification of investors. Director-interest contract restrictions under the Companies Act, 1956 do not automatically invalidate a mutual exit arrangement between individuals; invalidity depends on whether the transaction falls within the provision's prohibitory scope and requires the prescribed approvals. Individual liability under an arbitral award may be assessed separately from the company-related contract restrictions. Case-Laws Companies Law Fri, 06 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=358438