Switch of Shares Below Scheme of Amalgamation Would not Come Below Pre-emption Clause
The Bombay Excessive Courtroom has held within the matter of Shakti Insulated Wires (P) Ltd. v. Nice View Properties (P) Ltd. [2016] 135 SCL 80/68 taxmann.com 169 that the switch of shares underneath the Scheme of Amalgamation sanctioned by the Courtroom shouldn't be a switch of shares however is transmission by operation of regulation which might not come inside the pre-emptive clause of the Articles of Affiliation of the corporate. This text highlights the nuances in figuring out the pre-emption clause within the Articles of Affiliation and clarifies the distinction between switch of shares underneath the Scheme of amalgamation and switch of shares lined underneath the pre-emption clause of the Articles of Affiliation of the Firm. AN ANALYSIS 1. Introduction Part 58(2) of the Corporat...
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