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1 - 8 of 8 (0.31 seconds)The Companies Act, 1956
Article 50 in Constitution of India [Constitution]
Section 391 in The Companies Act, 1956 [Entire Act]
Section 393 in The Companies Act, 1956 [Entire Act]
Section 105 in The Companies Act, 1956 [Entire Act]
Hindustan Lever Employees' Union vs Hindustan Lever Limited And Ors on 24 October, 1994
In Hindustan Lever Employees Union v. Hindustan
Lever Ltd. (AIR 1995 SC 470), the Hon'ble Apex Court rejected
the argument of the Petitioner therein, that if some other method
was adopted, probably the determination of valuation could have
been more in favour of the shareholders. Merely because some
other method of valuation could be resorted to, which would
possibly be more favourable, that alone cannot militate against
granting approval to the scheme propounded by the Company.
Miheer H. Mafatlal vs Mafatlal Industries Ltd on 11 September, 1996
32. Mr. Lakhani has in this manner raised several
concerns regarding the valuation of shares. Before concluding on
this point, I must point out certain observations of the Courts in
the country regarding valuation of shares. Mr. Tulzapurkar,
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Learned Senior Counsel appearing for the Petitioner Company
has relied on the decision of the Hon'ble Apex Court in the case
of Miheer H. Mafatlal [supra]. One of the objections raised by
the appellant therein was that the exchange ratio of the equity
shareholders so far as the Transferee Company is concerned
works very unfairly and unreasonably towards them. As per that
scheme five equity shares of the Transferor Company were to be
exchanged for 2 equity shares of the Transferee Company. It is
pertinent to record the observations of the Hon'ble Apex Court in
this regard:
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