Sale of any undertaking
This query is : Resolved
09 December 2011
what are the compliances to be follwed by a listed company if it wants to sell a part of its undertaking
10 December 2011
Regarding Sale of an undertaking I would advise you to go through with section 293(1)(a) of the Companies Act, 1956.
The Section contemplates restrictions on the powers of the Board of Directors. As per section 293(1)(a) the Board can act only with consent of the members in general meeting. Therefore, where the question arises as to sale of an undertaking of the Company, the Board has the power to dispose off the undertaking, but with the consent of the general meeting.
It is relevant to note here that the Section is applicable only to Public Companies and to Private Companies which are subsidiaries of Public Companies.
A Private Limited Company is allowed to dispose its undertaking without shareholders approval just by passing a board resolution.
STOCK EXCHANGE NOTICE
With reference to clause 36 it is a material decision so you should promptly intimate the same to the STX immediately passing the resolution in the board meeting.
RG
The Section contemplates restrictions on the powers of the Board of Directors. As per section 293(1)(a) the Board can act only with consent of the members in general meeting. Therefore, where the question arises as to sale of an undertaking of the Company, the Board has the power to dispose off the undertaking, but with the consent of the general meeting.
It is relevant to note here that the Section is applicable only to Public Companies and to Private Companies which are subsidiaries of Public Companies.
A Private Limited Company is allowed to dispose its undertaking without shareholders approval just by passing a board resolution.
STOCK EXCHANGE NOTICE
With reference to clause 36 it is a material decision so you should promptly intimate the same to the STX immediately passing the resolution in the board meeting.
RG
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Tax rate change regarding
- GST ISSUE OF INPUT AND OUTPUT GST
- GST Intimation due to Government took possession of Business Premises under PPE Act
- SALARY CAN BE CAPITALIZE
- UDIN ISSUE
- Non filing of I T Returns
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
