tag:blogger.com,1999:blog-7560742510697286456.post4587520334280313074..comments2024-03-28T20:50:55.366+05:30Comments on Rare Indian Shares ( by Ashwani K Aggarwal ): Corruption is Also in Indian Corporate SectorAshwani Kumar Aggarwalhttp://www.blogger.com/profile/10820001457282962646noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7560742510697286456.post-84929493863130843902013-05-31T09:58:14.708+05:302013-05-31T09:58:14.708+05:30We remember an incident in late 1970 s ( when I wa...We remember an incident in late 1970 s ( when I was a student in Delhi ) , there was a famous case of a Listed Company where there was allegation of Mismanagement .<br /><br />Govt. has power to appoint Independent Directors , ostensibly , to safeguard the Interests of Minority ( Public Share Holders ). <br /><br />Some prominent persons gave Bags of Money to get appointed as Directors.<br /><br /> ( High denomination notes had been demonetised ( Rs. 100 , then ,Highest Value ) so ." the Public Interest Directors "had a bit of challenge carting ) .<br /><br />This was because these Persons knew that in the godowns of the Company were lying large quantities of a chemical which at that time was in acute short supply.<br /><br />The Directors had calculated that they would recover their " investment " by selling this product in BlackAshwani Kumar Aggarwalhttps://www.blogger.com/profile/10820001457282962646noreply@blogger.comtag:blogger.com,1999:blog-7560742510697286456.post-34675509004710687242013-05-29T16:03:18.374+05:302013-05-29T16:03:18.374+05:30The Majority cannot dictate to the Minority to com...The Majority cannot dictate to the Minority to compulsorily sell their Shares and that too at rates set by Majority Appointed Valuers / C A s.<br /><br />This is what was done by Cadbury India and , now , being done by Shakti Met -Dor (subsidiary of German giant Hormann Beteilgungs Gmbh )<br /><br />Delisting may be OK . But forced cancellation of Minority shares is not done even in Capitalism<br /><br />Capitalism means Demand and Supply.<br /><br />If the Majority wants the Minority 's shares then , to Quote from Mario Puzo 's Godfather " " They should make an offer we cannot refuse ". Let them approach us and buy at a mutually agreeable price but not at a Dictated Price.<br /><br />Free will transactions are the essence of Capitalism .Ashwani Kumar Aggarwalhttps://www.blogger.com/profile/10820001457282962646noreply@blogger.comtag:blogger.com,1999:blog-7560742510697286456.post-9009003512562882013-05-29T11:49:13.585+05:302013-05-29T11:49:13.585+05:30Courts are taking into consideration the concerns ...Courts are taking into consideration the concerns of Non Promoter Share holders as in the case of Cadbury India Limited.<br /><br />If the Fundamental Right ( Right to Equality ) enshrined in our Constitution is violated , our Courts would move in. We cannot have two set of Shareholders:- One Promoter Shareholders ( with extra rights and privileges and another Non Promoter Minority Shareholders ( at the mercy of the brute Majority )<br /><br /> Ashwani Kumar Aggarwalhttps://www.blogger.com/profile/10820001457282962646noreply@blogger.comtag:blogger.com,1999:blog-7560742510697286456.post-24764825870672284432013-05-29T11:20:52.628+05:302013-05-29T11:20:52.628+05:30I dont know if the blog adminstrator is legally li...I dont know if the blog adminstrator is legally literate but please note that in all such of reduction and compulsory buyback cases, court takes note of the general rule that it was the prescribed majority of the shareholders which is entitled to decide whether there should be a reduction in capital or notChiman Bhainoreply@blogger.comtag:blogger.com,1999:blog-7560742510697286456.post-41489806264867357852013-05-29T11:16:37.566+05:302013-05-29T11:16:37.566+05:30All the case of reduction of capital will fall fla...All the case of reduction of capital will fall flat in the courts since the courts do not interfere with economic policy unless it's found to be arbitrary or illegal and that it's not the function of a Court to sit in judgment over matters of economic policy which must be necessarily left to expert bodies<br /><br />Section 100 is power enoughBanku Bhaiyanoreply@blogger.comtag:blogger.com,1999:blog-7560742510697286456.post-39384192705539922192013-05-29T11:14:40.633+05:302013-05-29T11:14:40.633+05:30Section 100 of the Companies Act permits a company...Section 100 of the Companies Act permits a company to reduce its share capital in any mannerRajkumar Mittalnoreply@blogger.com