The Tribunal has the authority to order the purchase of shares ...

Minority shareholder's exit route paved by company's share buyback order.

Case Laws Companies Law

September 23, 2024

The Tribunal has the authority to order the purchase of shares by the company from any member u/s 242(2)(b) of the Companies Act, 2013, in cases of oppression and mismanagement. The Supreme Court has held that even without finding oppression, the court may grant relief to achieve substantial justice between parties. Though reasons were not explicitly stated, the Tribunal considered submissions and cited case laws before passing the order u/s 242(2)(b). As the respondent cannot sell shares in the open market, being a private company, the Tribunal's order to purchase shares is not prejudicial and aids smooth company operations. The NCLAT dismissed the appeal, finding no illegality in the Tribunal's order.

View Source

← Previous Next →

The Tribunal has the authority to order the purchase of shares ...

Minority shareholder's exit route paved by company's share buyback order.

Case Laws Companies Law

September 23, 2024

You may also like:

Addition u/s 56(2)(viia) - taking fair market value of buy back of shares by assessee from its holding company a company incorporated in USA - the provisions of section...

Oppression and Mismanagement - it will be detrimental to the interest of the company if litigation is continued on one pretext or other either by one group or the other....

Reduction of share capital - Even though the public shareholders/non promotor shareholders had objected to the reduction of share capital in the EGH but the majority...

Addition u/s 56(2)(viib) - valuation under Rule 11UA (2) - Even if preferential shares and equity shares are considered to be falling within the purview of Section...

Deemed dividend u/s. 2(22)(a)/2(22)(d) r.w.s. 115-O - purchase/ buyback of its own shares by the company - It is to be noted that as per the proviso to Sec. 2(22), only...

Income Tax: Tax on distributed income of domestic company for buy-back of shares to be treated as dividend in hands of shareholders. Cost of acquisition of shares bought...

Gain/loss on sale of shares - legal nature of the transaction - As per companies Act shareholder and company both are two separate legal person capable of holding...

Oppression and Mismanagement - minority shareholders - There was no alternative except liquidation or revival of company through other modes including sale of assets to...

Conversion of partly up equity shares into fully paid-up equity shares - the board of directors are well within the powers to make a call on the shareholders in respect...

There are certain oppression and mismanagement. The relationship between the Majority Shareholders & Minority Shareholders are strained. Hence, there is a need for...

Addition u/s 56(2)(vii)(c)(ii) - allotment of shares to assessee shareholder at a value lower - whether Tax to be paid by the shareholders or the company? - The shares...

Deemed dividend u/s 2(22)(e) is not taxable in the hands of the assessee company if it is not a shareholder in the companies that extended loans. It is chargeable to tax...

Purchase of minority shareholding - Clarification amendment - for the words, "transferor company", the words "company whose shares are being transferred" substituted -...

Capital gain arising on transfer of shares - the attempt of the assessee to bring the transferring of shares within the ambit of the term “reorganisation” may not be...

Importance of transparency in corporate governance and the rights of minority shareholders

Quick Updates: