https://www.taxtmi.com/caselaws?id=765475 The Madras HC dismissed a petition challenging the execution of an exit formula devised by the Company Law Board for foreign investors to exit a joint venture with an Indian company. The court held that the CLB's directions constituted reduction of share capital, not a buy-back of shares, requiring payment of invested amounts to the foreign investors. The petitioner's attempt to manipulate the exit formula interpretation was rejected. The court affirmed the legality of property sale to the foreign investor's nominee under FEMA regulations with proper RBI permissions. The petition was found to lack merit and was dismissed. en-us Tue, 07 Jan 2025 00:00:00 +0530 Sat, 01 Feb 2025 08:41:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765475 The Madras HC dismissed a petition challenging the execution of an exit formula devised by the Company Law Board for foreign investors to exit a joint venture with an Indian company. The court held that the CLB's directions constituted reduction of share capital, not a buy-back of shares, requiring payment of invested amounts to the foreign investors. The petitioner's attempt to manipulate the exit formula interpretation was rejected. The court affirmed the legality of property sale to the foreign investor's nominee under FEMA regulations with proper RBI permissions. The petition was found to lack merit and was dismissed. Case-Laws Companies Law Tue, 07 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765475