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TMI Blog1995 (2) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... t to entertain the application for transfer of one equity share each as detailed out in para 6 of the memo of appeal as a lot of 5 shares was purchased from the market and here also there is a history. 3. The shares originally belonged to one Gujarat Aeromatics Limited which merged with the present appellant-company. It was a case of reverse merger, in the sense that a profit making Company bearing the name of the appellant company had merged with the said Gujarat Aeromatics Ltd. and in the process, the merging company became the merged Company i.e., Gujarat Aeromatics Limited and the name contin- ued to be that of the merged company i.e., Atul Products Limited by changing the name of said Gujarat Aeromatics Ltd. as part of scheme o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 24 of the Articles of Association of the Company where it is provided that the Company would not split the shares for shares less than a marketable lot i.e., 50 shares. 7. In view of the aforesaid history, the lot of 50 shares of the merging company will have to be taken as 5 shares of the merged company as per the ratio agreed upon and if the request is for splitting those five shares under one share certificate to five different share certificates of one share each and transfer it to five different individual names, the Com- pany can refuse it under Article 24 of the Articles of Association of the Company unless the splitting sought is for making a marketable lot. However, so far as transferring the lot of five shares to the name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tructions or conditions of listing agreement laid down in pursuance of such laws or rules." 10. The respondent arguing the matter as party in person had taken me through section 9 of the Companies Act, section 111 of the Companies Act and also to said section 22A of the said Regulation Act, as also the standard listing agreement. He has accepted the position as found from the standard listing agreement that there might be a restriction with regard to the marketable unit of shares. This refers to the said concept of marketable lot or minimum number of shares to be dealt with in the market for sale and purchase which is a vital transaction so far as the transferability or lot of shares is concerned. 11. The said clause ( b ) of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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