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The Companies Act, 2013 provides for the compulsory acquisition of shares in certain cases. In your case, if the offer to acquire shares of your company has been accepted within four months by at least 90% of the shareholders to whom such offer was made, the acquirer is entitled to serve a notice upon the remaining shareholders (who have not so accept...
Wazzeer Professional Network
ProfessionalMy company is due to be acquired by another, and most of the shareholders have agreed to this as the company needs the support. However, a few of the shareholders are resisting the move. Is there a legal way to force them to give in? Urgent help required.
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Wazzeer Professional Network
ProfessionalThe Companies Act, 2013 provides for the compulsory acquisition of shares in certain cases. In your case, if the offer to acquire shares of your company has been accepted within four months by at least 90% of the shareholders to whom such offer was made, the acquirer is entitled to serve a notice upon the remaining shareholders (who have not so accepted the offer) to compulsorily acquire their shares. In such case, there is no need for prior approval from the NCLT either.
Alternatively, under Sections 230-233 of the Companies Act, 2013, your company may propose a scheme that permits either controller or the company itself to purchase shares held by the minorities by applying to the High Court to convene meetings of the various shareholder classes. The scheme must be approved by a 75% majority of shareholders present and voting. Once approval is obtained, the company must again approach the High Court for sanction of the scheme.
almost 3 years ago
View answer
My company is due to be acquired by another, and most of the shareholders have agreed to this as the company needs the support. However, a few of the shareholders are resisting the move. Is there a legal way to force them to give in? Urgent help required.
-
Wazzeer Professional Network
ProfessionalThe Companies Act, 2013 provides for the compulsory acquisition of shares in certain cases. In your case, if the offer to acquire shares of your company has been accepted within four months by at least 90% of the shareholders to whom such offer was made, the acquirer is entitled to serve a notice upon the remaining shareholders (who have not so accepted the offer) to compulsorily acquire their shares. In such case, there is no need for prior approval from the NCLT either.
Alternatively, under Sections 230-233 of the Companies Act, 2013, your company may propose a scheme that permits either controller or the company itself to purchase shares held by the minorities by applying to the High Court to convene meetings of the various shareholder classes. The scheme must be approved by a 75% majority of shareholders present and voting. Once approval is obtained, the company must again approach the High Court for sanction of the scheme.
almost 3 years ago
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