CONVERSION OF SHARES INTO STOCK

51.       Conversion of Shares into stock and vice versa
The Board may, with the sanction of the Company by ordinary resolution, convert all or any of its fully paid-up shares of any denomination into stock and may with the like sanction reconvert any stock into paid-up shares of any denomination.

52.       Right to stock holders
The holder of stocks may transfer the same or any part thereof in the same manner and subject to the same regulations under which the shares from which the stock arose might before the conversion have been transferred or as near thereto as circumstances admit; but the Board may from time to time fix the minimum amount of stock transferable and restrict or forbid the transfer of fractions of that minimum but the minimum shall not exceed the nominal amount of the shares from which the stock arose.

53.       Privileges of stock holders
The stock shall confer on the holders thereof respectively the same privileges and advantages, as regards participation in profits and voting at meetings of the Company and for other purposes, as would have been conferred by shares of equal amount in the Capital of the Company, but so that none of such privileges or advantages, except that of participation in profits of the Company shall be conferred by any such aliquot part of consolidated stock as would not, if existing in shares, have conferred such privileges or advantages.  And save as aforesaid, all the provisions herein contained shall so for as circumstances will admit, apply to stock as well as to shares.  No such conversion shall affect or prejudice any preference or other special privileges.

54.       Terms of issue of share warrants
Such of the regulations of the Company (other than those relating to share warrants) as are applicable to paid-up shares, shall apply to stock and the words, ‘share’ and ‘shareholder’ in those regulations shall include ‘stock’ and ‘stockholder’ respectively; such of the regulations stated herein above as are applicable to paid-up shares shall be equally applicable to conversion of Preference Shares into Equity and vice versa.

55.       Dematerialisation / Rematerialisation of shares
The Company shall be entitled to dematerialize the existing shares/ debentures and other securities held in the depository and or offer its fresh shares and debentures and other securities in a dematerialized form pursuant to the Depository act, 1996 and the rules, if any, framed there under.

Every person subscribing to the securities offered by the Company and every member or debenture holder shall have the option to hold the securities in the form of Security Certificate or to hold the securities with a depository when permitted.

Where any holder of securities surrenders his Certificate of Securities held in the Company in accordance with Section 6 of the Depository Act, 1996, and the Securities and Exchange Board of India (Depositories and participants) Regulations, 1996 the Company shall cancel the name of the relevant depository and inform the depository accordingly.

The Company shall maintain a record of certificates of securities that have been dematerialized and destroyed.

Such person who holds their securities with the depository can at any time opt out of the depository, if permitted by law, and the Company shall in such manner and within such time as prescribed by law issue to such person the requisite Certificate of Securities by Rematerialistion.

 

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