Sale of property

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Sneha (Querist)
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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.

Ankur Garg

Ankur Garg (Expert)
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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

Sneha

Sneha (Querist)
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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?

Rasesh

Rasesh (Expert)
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08 September 2010 Not REquired if the asset is not a substantial part of undertaking.

Sneha

Sneha (Querist)
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09 September 2010 thanks :)

Ankur Garg

Ankur Garg (Expert)
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09 September 2010 Yes

Agree with expert Rasesh.

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