Company Law Doubt

No, there is not any restrictions from obtaining shares to the extent of 25% of the paid up capital. However, in case of listed company,  certain disclosures are required on the part of shareholder and company as well.

Agree with learned member.

 In the book Financial Management-Ninth Edition( by I M Panday) its stated like that.

In page number 694 under the heading Legal Measures against Take overs its written that-

"The Companies Act restricts an individual or a company or a group of individuals from acquiring shares, together with the shares held earlier, in a public company to 25 per cent of the total paid up capital"

what treatment in issue of share before incorporated company

yes................

 can someone answer ma doubt.............................

 can you quote the section no pls... may be its related to smethg else... or it may b subject to certain condition like special resolution or somethg.... 

Originally posted by : Vishnu Nair
	In the book Financial Management-Ninth Edition( by I M Panday) its stated like that. In page number 694 under the heading Legal Measures against Take overs its written that- "The Companies Act restricts an individual or a company or a group of individuals from acquiring shares, together with the shares held earlier, in a public company to 25 per cent of the total paid up capital"   I M Pandey

There is no doubt that the interpretation of author is wrong here. I have no idea in which context above lines were used. Well i would suggest you one thing -- do not waste your time.

Regards

There is no such restriction in Company Law. Although some restrictions exist  in SEBI Act to control the holding. But these are for the sole purpose of regulation not completely prohobited.

An Individual can acquire shares in a Co. to the extent of 25%. But the person has to comply with SEBI Takeover Regulations i.e inform the Company for the first time when the acquisitions reaches 5% and each time when the acqusition reaches the percentages specified in the Takeover Regulations. Also public announcement is required when the acquisition reaches 15%.

No nothing like that, One of the Big Company Wipro, The Director of the company (Azim Premji )he had  stake in the company  85 % till 2006.

No  nothing like that one of the Big company like WIPRO, the Director of the company Viz Azim Premji HAve stake of 80 % and Above.

 some1 pls ans this ...