Exit Offer to Dissenting Shareholders- (Securities and Exchange Board of India) (01 Dec 2015)
Capital Market
The Securities and Exchange Board of India has released a discussion paper titled “Exit Offer to Dissenting Shareholders”. It draws attention to instances where a company has changed or proposes changes to the objects referred to in its prospectus and some shareholders not being agreeable to the same. It recommends that such dissenting shareholders should be given an ‘exit offer’ by promoters of the company or controlling shareholders who offer to buy out their shareholding at an ‘exit price’. The proposed regulations, which offer some specificity as to the process, acknowledge that amendments to the Companies Act will have to be carried out. Comments are being received till 23 December 2015.
Tags : DISSENTING SHAREHOLDER PROSPECTUS EXIT OFFER
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