1982 (11) TMI 115

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....titioner. T.S. Ramachandra for the Respondent. JUDGMENT Chandrakantaraj Urs, J. - This is a petition under section 107 of the Companies Act, 1956. The five petitioners are holders of 9½% redeemable cumulative preference shares in the respondent company. Respondent company is a company duly incorporated under the Companies Act, 1956 (hereinafter referred to as "the Act"). Initially,....

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.... respective shares up to December 31, 1981, be converted into equity shares from January 1, 1982." Petitioners who were present at the meeting are aggrieved by the resolution and have, therefore, approached this court for relief, inter alia, contending that the resolution cannot be given effect to as the requisite majority for passing the resolution at the aforementioned general meeting for the....

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....ights can be varied by obtaining the consent of that class of shareholders in writing and such consent must not be less than 3/4ths of the issued shares of that class or with the sanction of a special resolution passed at a separate meeting of holders of the issued shares of that class subject to the provisions contained in sub-clause (a) or (b) of that section. Undisputedly, the consent in writin....

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....nst the resolution." In other words, in conformity with what is provided in the first part of section 106 of the Act, the majority by which the present resolution can be validly passed at a special meeting for a sanction of the alteration of the rights of that class of shareholders is also by 3/4ths majority. It is not disputed that out of those present at the meeting on December 23, 1981, of t....