Postal Ballot Rules

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2011 Scenario: X Company(Unlisted) wants to acquire a division of Y Company(Listed) by means of postal Ballot.
Query: Can the Y company issue a notice to its members without stating the name of the X Company which is going to acquire its business?
My friends, I kindly request you to answer my query with a supporting case law or a supporting 'Valid' statement.
thanks in anticipation
Regards
CS Sidharth.C.A.

Jayashree S Iyer

Jayashree S Iyer (Expert)
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04 March 2011 When the Company goes for acquisition, the name of the acquiring company is very significant for considering the proposal whether to go ahead with the proposal or not. In the absence of the name, the shareholder will not be in a position to evaluate the proposal on a fair basis.

Hence in my opinion, disclosure of name of the acquiring company is very much essential in the notice served to the members.

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2011 Ma'am,
But i could find one such notice wherein they just mentioned that one of the business is on sale. on my going thru the notice, i couldnt find the name of the company being mentioned anywhere in that.
So can we say that that one of the division of the listed company on sale and after getting the acceptance from the shareholder, we can proceed with the acquirer company taking over the division?

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