9911796707
TMI BlogImposition of restrictions upon shares and debentures and prohibition of transfer of shares or debentures in certain cases.X X X X Extracts X X X X X X X X Extracts X X X X ..... pinion that such facts cannot be found out unless the restrictions specified in sub-section (2) are imposed, the [6] [Tribunal] may, by order, direct that the shares shall be subject to the restrictions imposed by sub-section (2) for such period not exceeding three years as may be specified in the order. [7] (2) So long as any shares are directed to be subject to the restrictions imposed by this sub-section ___ (a) any transfer of those shares shall be void; (b) where those shares are to be issued, they shall not be issued; and any issue thereof or any transfer of the right to be issued therewith, shall be void; (c) no voting right shall be exercisable in respect of those shares; (d) no further sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such period not exceeding three years as may be specified in the order, shall be void.] (5) The [14] [Tribunal] may, by order at any time, vary or rescind any order made by it under sub-section (1) or sub-section (3) or sub-section (4). [15] [(6) * * *(7) * * *]. (8) Any order made by the [16] [Tribunal] under sub-section (5) shall be served on the company within fourteen days of the making of the order. (9) Any person who ____ (a) exercises or purports to exercise any right to dispose of any shares or of any right to be issued with any such shares when to his knowledge he is not entitled to do so by reason of any of the said restrictions applicable to the case under sub-section (2); or (b) votes in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Substituted by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 80 for section 250. [2] Substituted by the Companies (Amendment) Act, 1988, section 43, w.e.f. 31-5-1991, for the words "Where it appears to the Central Government, whether in connection with any investigation under section 247, 248 or 249 or otherwise". [3] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. [4] The words and figures "248 or 249" omitted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000. [5] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier the quoted words were substituted for Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging agent before the date of the order shall have effect unless confirmed by the Central Government. (4) Where the Central Government has reasonable ground to believe that a transfer of shares in a company is likely to take place whereby a change ___ (a) in the composition of the Board of directors, or (b) where the managing agent is an individual, of the managing agent, or (c) where the managing agent is a firm or a body corporate, in the constitution of the managing agent, of the company is likely to take place and the Central Government is of the opinion that any such change would be prejudicial to the public interest, that Government may by order direct that any transfer of shares in the company during such pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for Central Government by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [15] Omitted by the Companies (Amendment) Act, 1988, section 43, w.e.f. 31-5-1991. Prior to the omission sub-sections (6) and (7) read as under: "(6) Where the Central Government makes an order under sub-section (1) or sub-section (3) or sub-section (4) or sub-section (5) or refuses to rescind any such order, any person aggrieved thereby may apply to the Court and the Court may, if it thinks fit, by order, vacate any such order of the Central Government: Provided that no order, whether interim or final, shall be made by the Court without giving the Central Government an opportunity of being heard. (7) Any order of the Central Government rescindi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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