Company Law Committee Report 2022 Suggests Many Amendments, Including Issue Of Fractional Shares
2 years, 5 months ago

Company Law Committee Report 2022 Suggests Many Amendments, Including Issue Of Fractional Shares

Live Law  

The latest Company Law Committee Reportof 2022 has proposed various significant amendments to the existing framework of the Companies Act, 2013 and some in the Limited Liability Partnership Act, 2008. Amending Chapter IV; Recognizing The Issuing And Holding Of Fractional Shares Section 4 of the Companies Act 2013, as well as paragraph 4 of Table F, currently limit the issuing and holding of fractional shares. Given the growing role of retail investors in the Indian financial market, the Company Law Committee has proposed that the Companies Act be amended to include provisions that allow for the issuance, holding, and transfer of fractional shares in dematerialized form for a class or classes of companies in the manner prescribed. As it is evident that the existing provision of the Companies Act is not in consonance with the RBI's policy, the Company Law Committee proposed a recommendation to amend Section 366 in order to prohibit the conversion of co-operative societies into a company.

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MintGenie Explains: What are fractional shares?
2 years, 8 months ago

MintGenie Explains: What are fractional shares?

Live Mint  

Drawing upon experience in the US, the Indian government is working on putting in place a framework for fractional shares, TOI reported. Against the current regime where an investor has to buy at least one share of a company at a trading price, fractional shares allow an Individual to put in a fixed sum of money to buy a particular …

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