HC SEAL ON "RIGHT OF FIRST REFUSAL" TO BENEFIT PES
A recent judgment by a divisional bench of the Bombay High Court, up-holding the validity of
agreement like 'right of first refusal' between promoters of unlisted firms and strategic investor,
has come as a big relief for both companies and private equity funds which invest in these firms.
The court ruled that such arrangements do not violate Section 111A of the Companies Act, which holds that share and debenture of companies must be freely transferable.
agreement like 'right of first refusal' between promoters of unlisted firms and strategic investor,
has come as a big relief for both companies and private equity funds which invest in these firms.
The court ruled that such arrangements do not violate Section 111A of the Companies Act, which holds that share and debenture of companies must be freely transferable.
0 comments:
Post a Comment