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Conflict between sec 43 and 48

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md shahadat

88 Points Posted on 24 April 2020

sec 43 talks about share with deffrenial right
which clearly says one kind of share can not be converted into shares withh deffrntial right
and sec 48 talks about variation in rights of shares

plz any one explain this confliction

Replies (2)

Quick Summary

This discussion clarifies the apparent conflict between Section 43 and Section 48 of company law concerning share rights. Section 43 defines different kinds of share capital, stating one kind cannot be converted into another with differential rights. Section 48, however, addresses variations in rights within a class of shares, allowing for differentiation (e.g., Class A, Class B) under certain conditions. The key distinction lies between 'kinds' of share capital and 'classes' within a kind.

VINAYAK

Assistant Finance Manager

46 Points Posted on 25 April 2020

Plain reading of Both Sections clearly says... Section 43 says about the KINDS of Share Capital.. Section 48 about the CLASS of share Capital...Here need to understand is under section 48 with the same kind like Equity Share can have further classes of shares like class A class B which allows by section 48 subject to MOA N AOA provisions if the company.. Hope I could able to answer your question..

md shahadat

88 Points Posted on 06 June 2020

But i m getting confuse one says one kind of share can not be converted into shares with deffrential voting right
and other section is for change in share voting right
why so