After being taken over by Siemens , prospects of C and S Electric are very bright,
So the promoters are kicking out loyal remaining Non promoter shareholders at a throwaway rate.
Shareholders to Oppose this compulsory acquisition at a throwaway price
SEBI must intervene. Laws must be changed to protect the small share holders of Unlisted Companies.
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Blog Comments
NCLT's Landmark judgement against compulsory acquisition of shares
Old Post - September 01, 2019
God Bless the Regional Director ,
Western Region , Ministry of Corporate Affairs , Mumbai , for
safeguarding the interests of Non Promoter / Loyal Remaining
shareholders of HSBC InvestDirect ( India ) Limited
http://www.mca.gov.in/MinistryV2/regionaldirectors.html.
In a landmark move the Hon'ble Regional Director opposed in NCLT for the Selective Reduction of Capital.
Last hearing of HSBC InvestDitect in NCLT was on 01/07/2019.
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If
the Company feels that the rate it is
offering is " FAIR " then it should , also , be willing to offer to
sell its entire majority holding at that rate . The minority share
holders ( and other Indian share holders ) should have a Right of Pre
emption at that " FAIR " rate. For example if Lotte India feels that Rs
882 /29 p per share is a " fair rate " then Indian shareholders in
general should be given an opportunity to form a SPV ( Special Purpose
Vehicle ) Company which ( with suitable debt equity Leveraged Buy out )
and buy at the same rate the majority shares from the Promoters. A
period of 6 months should be kept for giving this opportunity to Non
Promoter Indian shareholders
.
===================================
The
Valuers etc are all engaged by the Managements and cannot be considered
as Unbiased or totally Fair. Affected shareholders should be allowed to
have their own valuers / Valuation Reports.
=====================
Games Promoters Play ( on Minority Public Shareholders ).
1 ) Selective cancellation of Non Promoters shares.
2 ) Conversion of Equity shares in to Redeemable Preference Shares.
3 ) Consolidation of face value of one share to a Higher Denomination .
In all cases , valuers are appointed and Paid by the Company. Thus they are Promoters' Agents.
--------------------------
If the Company
feels that the rate it is offering is " FAIR " then it should , also ,
be willing to offer to sell its entire majority holding at that rate .
The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate.
For example if FCI OEN Connectors Limited feels that Rs.767 is a " fair
rate " then Indian shareholders in general should be given an
opportunity to form a SPV ( Special Purpose Vehicle ) Company which (
with suitable debt equity Leveraged Buy out ) and buy at the same rate
the majority shares from the Promoters.
A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders
OLD POSTS
Jolly
Board , which holds very valuable real estate assets in Kanjur Marg ,
Mumabi , is also following similar cheap tactic to oust loyal remainder
small shareholders.
http://www.rareindianshares.info/2015/11/jolly-board-consolidates-face-value-to.html
========
Suashish Diamonds does the same anti shareholders move :-
http://www.rareindianshares.info/2015/12/suashish-diamonds-to-kick-out-loyal.html
================
Blog Disclaimer : Please Recheck All Information . All information given in Good Faith. No Responsibility .
=========
For further case studies vis - a - vis small shareholders , please consider the following links :-
General Warning : Investment in Shares Can be Injurious to Your WEALTH
Disclosure
: The Blog writer in his / family names used to have holdings in C and S Electric . So please make suitable " provisions " for any likely Over
Optimism
NB
:All information given in good faith. Please recheck every point before
taking an investment decision.No responsibility with this blog / blog
writer
----------
HUM MEHNAT KASH ISS DUNIYA SE
JAB APNA HISSA MANGEY GEY
IK BAGH NAHI; IKK KHET NAHIN
HUM SAARI DUNIYA MANGEY GEY
( Josh Malihabadi )
_________________ SAADA HAQ , ETHEY RAKH