https://www.taxtmi.com/caselaws?id=285590 Section 105(c) of the Indian Companies Act was construed as requiring a practical, equitable allocation of newly issued shares among existing members, not an exact mechanical division that would create absurdity or inconvenience. The directors were therefore entitled to decide the number of shares to be issued, and the issue was not invalid on proportionality grounds. The article also states that the power to issue shares is fiduciary and must be exercised bona fide for the company's benefit; however, where fresh capital is genuinely needed for business purposes, an incidental effect of preserving management control does not by itself make the issue mala fide or invalid. 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 Section 105(c) of the Indian Companies Act was construed as requiring a practical, equitable allocation of newly issued shares among existing members, not an exact mechanical division that would create absurdity or inconvenience. The directors were therefore entitled to decide the number of shares to be issued, and the issue was not invalid on proportionality grounds. The article also states that the power to issue shares is fiduciary and must be exercised bona fide for the company's benefit; however, where fresh capital is genuinely needed for business purposes, an incidental effect of preserving management control does not by itself make the issue mala fide or invalid. Case-Laws Companies Law Thu, 11 Mar 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285590