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CS Executive · Company Law and Practice · Members and Shareholders

Vikram Ltd. made an offer to acquire all shares of Sagar Ltd., and within four months holders of not less than nine-tenths in value of the shares involved approved it. Dissenting shareholder Pooja objects. Which statement is correct under the Companies Act, 2013?

Once holders of at least nine-tenths in value approve the offer within four months, the transferee company may, within two months after those four months expire, give notice to dissenting shareholders such as Pooja that it desires to acquire their shares.

  1. AThe transferee company may, within two months after the expiry of the four months, give notice to Pooja that it wishes to acquire her sharesCorrect
  2. BPooja can never be compelled to sell, since shareholders cannot be bound by majority approval
  3. CThe transferee company must give the notice within one month of the offer
  4. DPooja's shares can be acquired only if all shareholders approve the scheme

Explanation

Where nine-tenths in value approve within four months of the offer, the transferee company may within two months after those four months give notice to any dissenting shareholder that it desires to acquire the shares. Option C states the wrong period, and option D wrongly demands unanimity.

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