https://www.taxtmi.com/caselaws?id=285590 Further share issues must be offered to existing members in proportions as nearly as circumstances permit, rather than through an impossible mechanically exact division. Directors may determine the number of shares issued, provided the statutory objective of equitable distribution is practically met. The power to issue shares is fiduciary and must be exercised bona fide for the company's benefit. Where genuine business and expansion needs require fresh capital, an incidental effect of preserving existing management's control does not itself make the issue mala fide or invalid. The share issue was therefore legally valid and bona fide. en-us Thu, 11 Mar 1948 00:00:00 +0530 Sat, 18 Jan 2020 10:18:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285590 Further share issues must be offered to existing members in proportions as nearly as circumstances permit, rather than through an impossible mechanically exact division. Directors may determine the number of shares issued, provided the statutory objective of equitable distribution is practically met. The power to issue shares is fiduciary and must be exercised bona fide for the company's benefit. Where genuine business and expansion needs require fresh capital, an incidental effect of preserving existing management's control does not itself make the issue mala fide or invalid. The share issue was therefore legally valid and bona fide. Case-Laws Companies Law Thu, 11 Mar 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285590