Home Case Index All Cases Companies Law Companies Law + AT Companies Law - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 827 - AT - Companies LawPenalty on the appellants under Section 15HB of SEBI Act - the appellants have violated regulation 23(1) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 - obligation cast on the BoD of a company under the Takeover Regulations, 1997 - Held that:- In the present case the appellants as BoD of the company knew very well that prior approval of the general body of shareholders was necessary before entering into any document for encumbering the assets of the company and accordingly the appellants as BoD of the company had convened EOGM on January 18, 2010. Even after knowing their obligation under regulation 23, the appellants ought not to have indulged in encumbering the Vile-Parle (West) property of the company in gross violation of regulation 23 of the Takeover Regulations, 1997. In the absence of any compelling reason for entering into the MoU on December 26, 2009, before the EOGM scheduled on January 18, 2010 the appellants who have grossly violated regulation 23 of the Takeover Regulations, 1997, deserve harsh punishment. In these circumstances, we see no reason to interfere with the penalty of ₹ 1 crore imposed on the eight appellants which is directed to be paid jointly and severally.
|