Sale of property
This query is : Resolved
07 September 2010
A listed company wants to sell an immovable property (land). Is shareholders approval required for the same? Or is it enough to get the board approval and execute the transfer?
Regards.
Regards.
Ankur Garg
(Expert)
07 September 2010
You are requested to refer section 293(1)(a)...if the property is a substantial one then you have to take shareholders approval through an ordinary resolution.
Being a Listed company it is mandatory to take the route of postal ballot process read with postal ballot rules, 2001.
Revert if there is any doubt
Rgds
Being a Listed company it is mandatory to take the route of postal ballot process read with postal ballot rules, 2001.
Revert if there is any doubt
Rgds
08 September 2010
Ankur, thanks a lot for the response. however it is only a piece of land and is in no way 'substantial' part of the undertaking.
Does the need for Postal Ballot arise now?
Does the need for Postal Ballot arise now?
08 September 2010
Not REquired if the asset is not a substantial part of undertaking.
Ankur Garg
(Expert)
09 September 2010
Yes
Agree with expert Rasesh.
Agree with expert Rasesh.
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