The SC dismissed the appeal holding that when a company proposes ...

Company must obtain shareholder approval via special resolution before issuing equity shares against debt.

January 3, 2025

Case Laws Companies Law SC

The SC dismissed the appeal holding that when a company proposes to increase its subscribed capital by converting debt into equity shares, shareholder approval through a special resolution is mandatory u/s 62(1)(c) of the Companies Act, 2013. The appellant company had not obtained such approval before seeking listing of additional shares allotted to the Asset Reconstruction Private Limited, which was a prerequisite under Regulation 28 of the SEBI (LODR) Regulations, 2015 as well. The BSE and SAT rightly refused listing approval for want of shareholder approval.

View Source

← Previous Next →

The SC dismissed the appeal holding that when a company proposes ...

Company must obtain shareholder approval via special resolution before issuing equity shares against debt.

January 3, 2025

Case Laws Companies Law SC

You may also like:

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...

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...

Reduction of issued, subscribed, and paid-up equity share capital u/s 66 of the Companies Act, 2013. Compliance with Sections 66(1), 66(2), and 66(3) satisfied....

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...

The ITAT held that u/s 56(2)(viib), addition on premium amount in excess of FMV for issuing Optional Convertible Preference Shares to holding company is unsustainable....

Validity of allotment of shares to majority shareholders of private limited company - The stand of the Company is that since it is a family Company and the decisions are...

Oppression and Mismanagement - Issue of Right Shares - subsequent Rights Issue during the pendency of 1st Rights Issue - gross under-subscription of the rights issue -...

The NCLAT held that disputes related to shareholder oppression or mismanagement under the Companies Act are distinct from the Insolvency and Bankruptcy Code (IBC) and...

Revision u/s 263 - issue of bonus shares would amount to distribution of dividend or not - the assessee has issued only equity shares and there are no preference shares....

Amendment to Regulation 3.1 of FEMA, Mode of Payment and Reporting of Non-Debt Instruments - To facilitate the purchase or subscription of equity shares of Indian...

This notification amends the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, introducing key changes. It defines "control" for limited liability...

Liquidation of the Corporate Debtor / Company - Aggrieved Person - Members of the suspended Board of Directors - Considering the fact that the Appellant / Petitioner who...

Sanction of Scheme of merger by absorption - when the ‘Transferor and Transferee Company’ involve a parent Company and a Wholly Owned Subsidiary the meeting of Equity...

Short Term capital Gains - Transfer / Conversion of Redeemable Cumulative Convertible Preference Share and Fully Compulsory Convertible Preference Shares to equity...

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...

Quick Updates: