tag:blogger.com,1999:blog-3202774368551476669.post8644373274728312423..comments2023-09-15T16:21:31.980+05:30Comments on INDIAN CORPORATE LAW: The Debate over Multiple Classes of SharesUmakanth Varottilhttp://www.blogger.com/profile/12438677982004444359noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3202774368551476669.post-21194747372055881642011-06-15T11:26:07.801+05:302011-06-15T11:26:07.801+05:30So once the Companies Act 2009 comes into force th...So once the Companies Act 2009 comes into force there should not be any shares with DVR existing. Therefore what happens to the existing shares with DVR. There is no clarification as such in the proposed Bill. Is it like companies have to undergo "arrangement" or "buyback and cancel" such shares. As of now there seems to be no formal methodology proposed under Companies Act 2009 which can purport to create uniformity amongst existing oridinary equity share capital and existing shares with DVRs.Dipen Chatterjeehttps://www.blogger.com/profile/05702603665560906338noreply@blogger.comtag:blogger.com,1999:blog-3202774368551476669.post-51033216942859527882009-12-03T11:12:29.736+05:302009-12-03T11:12:29.736+05:30The removal of shares with differential rights in ...The removal of shares with differential rights in the Companies Bill 2009 is certainly a retroactive move as developed markets like Canada, Australia, Delaware, UK and Hong Kong allow issue of such shares. The rights attached to shares should be a matter of contract between the member and the company (regulated by the company's charter documents)and the only justified restriction may be in case of shares with superior voting rights in case of listed companies to avoid prejudice to the public shareholders (SEC imposes such restriction like the SEBI). This would provide companies with flexibility in raising finance as per the needs of the investors.Raghav Sharmahttps://www.blogger.com/profile/12236746795762747933noreply@blogger.com