TOPIC 22: QUICK REFERENCE TO “Variation in Rights of Shareholders”

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Quick Reference to " Variation in Rights of Shareholders" :-.
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Legal Provision:-.
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Section 48 of Companies Act, 2013.
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Points:-.
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1. Variation of Shareholder Rights means Differential aspects to any class of Shareholders.
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2. Special Resolution or 75% Consent from that particular class holders of issued shares in writing is required.
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3. MOA or AOA should have Provision for this aspect.
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4. Variation should not interdict / forbid the terms of issue.
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5. Dissenting shareholders (min 10% holding of that class) can apply to NCLT in form NCLT-1.
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6. Application should be made within 21 days on which consent were given or from the date of resolution.
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7. Order of NCLT is required to filed with ROC.
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Regards
ACA SOURAV BAGARIA