Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Voting Rights

Arihant (13 Points)

10 May 2007

Can shareholders enter into an agreement to curtail the voting rights of a few shareholders?

Reply
Follow
Share

4 Replies

Ankit Bhatia (163 Points)
Replied 10 May 2007

No body can curtail it ,as it is a statutory right given by Act itself(and it is not a personal priviledge)

Upgrade to CAclubindia Pro. Subscribe Now!

Samrendra (22 Points)
Replied 10 May 2007

Ankit Bhatia (163 Points)
Replied 10 May 2007

No body can curtail it ,as it is a statutory right given by Act itself(and it is not a personal priviledge)

Nitin (43 Points)
Replied 10 May 2007

Normaly no, but there are two situation where some ristriction or differenciation can be there in voting write, since as per querry these are WITH consent/agreement between parties.

1. Shares with different voting rights(no voting rights can be issued against surrender of existing shares if other formalities are observed and also if otherwise it is permissible in particular case. (company should be eligible for the same & permission u/s 391 MAY? be necessary of High Court to the scheme, SEBI, SE permissions etc etc

2. Between promoters groups there may be a shareholders' agreement for conduct, rights and entitlements between promoters if there are more than one promoter. This agreement may put certain ristriction and contingencies on exercise of rights on shareholding OF PROMOTERS.