HC restrains DBS Bank from acting against interests of LVB shareholders
Suresh Kumar | TNN | Updated: Nov 28, 2020, 07:21 IST
The court said: "Even if the authorities have the power to reduce the share value during an amalgamation under Section 45 of the Banking Regulation Act, reducing it to zero prima facie cannot be done without very very compelling reasons."
A division bench of Justice Vineet Kothari and Justice MS Ramesh also directed the DBIL to furnish an undertaking to compensate shareholders of LVB in case the court rules so at a later stage. DBIL has also been directed to create a separate reserve fund in its books of account to the extent of the face value of shares of LVB and maintain the same subject to further orders.
https://m.timesofindia.com/city/che...ief-for-shareholders/articleshow/79456850.cms
Suresh Kumar | TNN | Updated: Nov 28, 2020, 07:21 IST
The court said: "Even if the authorities have the power to reduce the share value during an amalgamation under Section 45 of the Banking Regulation Act, reducing it to zero prima facie cannot be done without very very compelling reasons."
A division bench of Justice Vineet Kothari and Justice MS Ramesh also directed the DBIL to furnish an undertaking to compensate shareholders of LVB in case the court rules so at a later stage. DBIL has also been directed to create a separate reserve fund in its books of account to the extent of the face value of shares of LVB and maintain the same subject to further orders.
https://m.timesofindia.com/city/che...ief-for-shareholders/articleshow/79456850.cms
