Home Case Index All Cases Companies Law Companies Law + SC Companies Law - 2005 (8) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (8) TMI 373 - SC - Companies LawAuthority and power of the Reserve Bank of India challenged - issue of bonus shares - Held that:- Appeal dismissed. The Companies Act specifically permits utilization of reserve arising from revaluation of assets for purpose of issuing fully paid up bonus shares. When the law so permits, Article 182 authorizes the company to issue Bonus shares out of reserves arising from revaluation of capital assets. Thus, even though the interpretation given by the High Court on Article 182 is not correct, still the final conclusion that Article 182 does not prohibit issuance of Bonus shares is correct and requires no interference. As submitted on behalf of the Respondents that the Company had complied with the directions and had been granted time of 7 years to regularize its accounts. Thus it is not necessary for us to go into this controversy as it will always be open to the Reserve Bank of India to take such action as is available to it in law, if it feels that its directions were not complied with.
|