Dear All,
ABC Public Ltd. want to sale some machinary.
1. Proposed transaction Value of Machinary is exceeding 20% of Networth.
2. Book value of machinary to be sold is below 20% of Networth
Whether shareholders' approval required?
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Section 180(1)(a) -
Replies (3)
In my opinion, In the above case there is no requirement of shareholder approval.
The trigger point in section 180(1)(a) is the investment amount or book value & not the market value or transaction value.
Since the book value does not exceed 20% of the company's net worth, the transaction does noptr fall under definition of "Undertaking".
Thank u !!!
As the book vaule of transaction is not execeeding the 20 % of the Company's net worth, the approval of shareholders under Section 180 1(c) will not be rquired in this case.
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