Purchase of minority shares without compliance to Companies Act amounts to oppression and Mismanagement


Last updated: 06 October 2022

Court :
NCLAT

Brief :
The provisions of Section 236 of the Companies Act, 2013 specifically provides the procedure of acquisition of shares of minority, when a person personally or acting in concert with acquirer, acquires 90% or more issued share capital of the company by virtue of an amalgamation, share exchange, conversion of securities or for any other reason, such acquirer, person or group of persons, as the case may be, shall notify the company of their intention to buy the remaining equity shares. Any procedure used for acquiring minority shareholding than mentioned in Section 236 referred above is an act of Oppression and Mismanagement.

Citation :
Company Appeal (AT) No. 272/2018

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