Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Company Law Board Companies (Amendment) Act 2000 Companies Act 1956 Articles of Association |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Companies Act, 1956 (1 of 1956) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Companies Act, 1956 - ss. 3(1)(iii), 43A and 43A (1C), 43A (11) - Articles of Association - Article 57 - Pre-emption clause - Amendment made by the Companies (Amendment) Act, 2000 to ss. 3 and 43A - Effect of, on the rights and obligations created by Art. 57 of the Articles of Association of the Company - On facts, Company incorporated as private company, became public company - Art. 57 contained restrictions on the rights of all the shareholders to transfer their shares, shareholders desiring to sell his shares to offer shares to other shareholders of the company - Respondent no. 2-shareholder selling shares in the Company, committing breach of pre-emption agreement contained in Art. 57- Company petition by appellant-minority shareholder - Dismissed by Company Law Board - High Court also dismissed the appeal holding that the agreement between shareholders of unlisted public company conferring a right of pre-emption embodied in its Articles is invalidĀ· and unenforceable - On appeal, held: Failure of the company to amend its Articles of Association to give effect to clause (d) of s. 3(1 )(iii) does not effect the operation of its Art. 57 - Requirement of amending the Articles of Association pursuant to the Amendment Act 53 of 2000, insofar as such companies are concerned, is only optional on the part of the shareholders - Companies (Amendment) Act, 2000. |
Judge | Hon'ble Mr. Justice Jasti Chelameswar |
Neutral Citation | 2014 INSC 745 |
Petitioner | Darius Rution Kavasmaneck |
Respondent | Gharda Chemicals Limited & Others |
SCR | [2014] 11 S.C.R. 1119 |
Judgement Date | 2014-10-28 |
Case Number | 2481 |
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