Sanjay Suresh (articled assistant) (1 Points)
25 February 2017Company-A is a waste disposal company. Company-B hired company-A to dispose their waste. Company-B have also invested in the shares of Company-A. Company-A agreed to dispose the waste and completed the task. Company-B incurred huge losses and liquidated. All the secured creditors and debentureholders' claims were settled and there was no cash or property left to pay the fees to Company-A(for the job of waste disposal). Can company-A have a lien on the shares invested by company-B in them?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 28 February 2017
Refer provision in Articles of Association of the company. Article 9 of model Articles provided in the Act. It provides that lien is possible only in partly paid-up shares.
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