Compulsory Buyback - Bad in Law - Are Anti Public Shareholders - Reed Relays Latest

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Blog Gratitude to Bhavin Leua. Please Unite. Take up With SEBI . Press etc. In Reed 's cae , now , the Company would have to file a case with the Hon'ble Madras High Court. Please challenge it in the High Court , like Cadbury India.

http://www.rareindianshares.info/search?q=reed+relay

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 Bhavin Leua 's Message

Dear All,

Be aware or cautious before Invest into those company whose promoter stack is more than 75% in which the tendency started for cumpolsury buy back of non promoter stack & Investor silentely watched / agreed. (like Reed Relay, Mohan Steel). Likely to be occur in CTR manufacturing, San Engineering, Kutch Salt and Many more. Many promoters are planning for bad amalgamation ratio of Resin & Plastic, Sea lord Container etc. with current listed sister concern.

Jessop - Director Behind the bars and Huge fire in Company.

Attached Resolution of RRE. Major shareholders are not live or change of address and they passed the resolution based on own shares. Also See for Mohan Steel.

Please raise your voice.

Regards,

Bhavin Leua

(M / Whatsapp )9033476634 (contact preferably on whatsapp)

http://www.rareindianshares.info/2016/12/reed-relays-persists-with-its-brute.html

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OLD POST

OPPOSE  COMPULSORY BUY BACK OF SHARES

Delisting may be OK .

 But forced cancellation of Minority shares is not done even in Capitalism

Capitalism means Demand and Supply.

If the Majority wants the Minority 's shares then , to Quote from Mario Puzo 's Godfather " " They should make an offer we cannot refuse "

. Let them approach us and buy at a mutually agreeable price but not at a Dictated Price.

Free will transactions are the essence of Capitalism .

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OLD POSTS

October 27, 2016

Alfa Laval ( India ) Kicks Out Loyal Remainder Public Shareholders

Alfa Laval ( India ) has become the latest MNC  to follow the example of Cadbury India, in compulsorily buying back the shares of Non Promoter remaining Loyal shareholders through a Court order. 

The payment made is @ Rs. 4000/. same as was given four and a half years ago for voluntary buy back / delisting. 

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  Alfa Laval ( India ) Limited Delisted on 19-04-12 at Exit Price of Rs. 4000 Per Share.Exit Window was available Till 18-04-13.

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January 18, 2011

Cadbury India Limited

We salute all those share holders of Cadbury India who are steadfastly giving their time and money in pursuing the High Court case against compulsory acquisition of shares from remaining minority share holders.

There are around 8,159 remaining non promoter shareholders who together own 2.42% stake in Cadbury India.

We strongly feel that Government of India and SEBI should amend the laws so that Companies using their " brute majority " are not able to " compulsorily " buy out minority shareholders at what they perceive to be the " fair value " . Delisting may be OK . But a High Court Order for selective share reduction ( of Non Promoter Share holders ) is a different matter altogether.

 1 ) If a company wishes to buy back compulsorily then in the voting procedure the majority holder ( promoter ) should be debarred from voting . Only the small share holders should have the Right to vote on that particular Resolution .

2 ) As in the case of land acquisition , the Company should state valid reasons for acquisition of remaining shares ( In Cadbury 's case the remaining 2 odd  % share holders can , frankly , in no way alter  the Company 's policies.)  Only a few more Annual Reports are to be despatched and a few more chairs at the AGM .  ( Cadbury India Limited 's shares were delisted w.e.f  20-01-2003 )

3 ) There should be a soletium  ( a premium over and above the fair value to compensate for compulsory buy out ) of 50 %

If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority  holding at that rate . The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate. For example if Cadbury India Limited feels that Rs.2000 is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy  at the same rate  the majority shares from the Promoters. A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders

However , we  sincerely wish that Cadbury India Limited offers its remaining loyal share holders " Kuchh Meetha " and in New Year 's " Shubh Arambh " withdraws this move.
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Compulsory Back Back of Shares- Violates Fundamental Right to Equality

Regarding the move , earlier of Cadbury India Limited and , now , by Shakti Met-Dor Limited :-

Compulsory Buy Back of Shares ( selectively from minority Non promoter Share holders ) is violative  of Fundamental Right of Equality enshrined in the Constitution of India

Such a move creates two separate and unequal classes of Shareholders , i.e. Promoter Share Holders and Non Promoter Share Holders .

Please read this very informative Post :-

http://www.legalservicesindia.com/article/article/squeeze-out-of-minority-shareholders-1503-1.html

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For Shakti Met-Dor , please click :-

http://www.rareindianshares.info/2013/05/shakti-met-dor-compulsory-acquisition.html

--------------------Regarding Compulsory Cancellation of Shares Moves  by

Cadbury India Limited 

Shakti Met-Dor Limited  ((subsidiary of German giant Hormann Beteilgungs Gmbh )

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.

http://www.rareindianshares.info/2013/05/corruption-is-there-in-indian-corporate.htmlhttp://www.suchetadalal.com/?id=175202d7-a5ce-be2f-492fe1477460&base=sub_sections_content&f&t=Essar%27s+Delisted+Saga

 http://www.business-standard.com/india/news/cadbury-raises-buyback-price/421719/

 http://www.moneycontrol.com/news/business/why-didn39t-you-give-fin-projections-to-ey-hc-asks-cadbury_562074.html

http://seekingalpha.com/news-article/1520805-cadbury-kraft-india-one-of-fastest-growing-operations-for-kraft-globally

http://rareindianshares.blogspot.com/2011/01/cadbury-quit-india.html

http://www.gauravblog.com/?p=1277

http://www.kraftfoodscompany.com/in/en/Brands/index.aspx

http://www.rareindianshares.info/2012/07/ecellent.html

http://altaisadvisors.com/blog/2012/07/08/cadbury-india/comment-page-1/#comment-1517

http://www.rareindianshares.info/2012/11/cadbury-india-or-mondelez-international.html
http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/small-equity-investor-how-to-safeguard-your-interests/articleshow/21742266.cms?curpg=3

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OLD POST - Reed Relays

Sheer Loot -Reed Relay Compulsory Buyback @ Rs.107- Experts Say

Letter by a Shareholder to the Company :-

Dear Sir:

I have received your postal Ballot Notice regarding compulsory acquisition of non-promoter shareholdings. In this connection the proposal seems to me a dishonest, illegal and criminal proposal for illegal enrichment at the cost of the non-promoter shareholders who have believed in your entrepreneurship and invested in your Company by going through your published Balance Sheet of several years. Till date we were not aware that you had criminal and illegal intentions to cheat the shareholders of your own company. We were under the impression that the promoters are all people of high ethics, morality, equity and fair.  However the dark side of you has come out openly through this compulsory acquisition proposal which I am sure will be a black mark for you for generations to come.

Your reasoning for the compulsory acqusition as mentioned in the explanatory statement  in the garb of SEBI guidelines etc are all deliberate falsehood with ulterior motives of personal enrichment. In the process it is distressing to see two professionals 1) P. Pattabiraman and Co. Chartered Accountants  and 2) Mr. Adit N. Bhuva, Practising Company Secretary are also colluding  with you for your illegal proposal.

The proposal raises fundamental questions of investments in Securities of Public Limited Companies by investors and the way in which corporate governance are handled by fraudulent promoters like you.  The systematic mis-use of SEBI guidelines, misuse of the name of High Court, Companies 2013 etc.in your proposal  are a big challenge.

I have decided to take up the matter with appropriate legal forums to see that you are prevented from going ahead with this proposal. 

In the meanwhile you are requested to kindly forward me a copy of valuation report of P. Pattabiramen & Co, Chartered Accountants who has determined a fair value of the shares.

P P Zibi jose

Shareholder

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 As per my view fair value is above 400.

Dhruval Shah

(M)- 9898150967/8000133721(whatsup)

Mail id :- shahdhruval15@gmail.com

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Reed relays& electronics India ltd proposing to Cancel Non Promoter Holding @ 107 per share. Very Unfair Treatment to minority shareholders.

Book Value     Rs 345

Cash and Bank Balance  Per Share Rs 210

 Dilip Surana
Mobile   09840278351 

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OLD POSTS

Reed Relay - Shareholders Unite to Get Cancelled @ Compulsory Acuisition

Dear Sir,

I would like to invite Share holders of Reed Relay though this EFFECTIVE PLATFORM to protest against the company

I am holding just 212 shares and that to purchased not at very high price but to protect other shareholders and to protest AGAINST THE DADAGIRI OF THE PROMOTERS.

"  I REQUEST THE SHAREHOLDERS TO VOTE THROUGH THE ELECTRONIC MEDIA ONLY i.e. though evoting only. Because it may happen that promoters intentionally do not put entry of the ballot in the inward register, may ask the post man not to deliver the same before the expiry date, may ,may , do any thing as they like . but if the same is done through " EVOTING"  we have perfect record officially on the website .

i have yesterday voted through the evoting platform and is very easy to use the same.

IT IS MR. NARENDRA MODI WHO HAS PUT A SURGICAL STRIKE AGAINST THE BLACK MONEY NOW IT IS OUR TURN TO PUT SURGICAL STRIKE AGAINST THE GREEDY AND CHEATER PROMOTER WHO HAS USED OUR MONEY TO FLOURISH THE COMPANY AND WHEN THERE INTENTION IS OVER THEY THREW AWAY LIKE ANY THING.

JAGO SHARE HOLDER JAGO.

JAI HIND. 

THANKS & REGARDS,
TUSHAR S AGARWAL
AHMEDABAD
M# 09824601977

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OLD POSTS

November 15, 2016

Reed Relays @ Rs.107-Compulsory Buy Back- Shareholders Protest

ONE MORE COMPANY HAS BEEN ADDED TO THE GROUP OF COMPULSORY BUY BACK 

THE NAME IS REED RELAYS AND ELECTRONICS INDIA LIMITED

THEY HAVE SENT THE POSTAL FORM THROUGH SPEED POST FOR PASSING THE RESOLUTION FOR COMPULSORY EXTINGUISHED THE SHARES OF MINORITY SHARE HOLDERS @ 107/-

PLEASE KNOW THE FACT

B.V  350+

DIVIDEND PAYING  (FOR THE YEAR 15-16 DIVIDEND PAID RS. 1.6

SMALL EQUITY OF JUST RS. 1 ODD CRORE 

PLEASE GUIDE ME AS I DONT WANT TO SURRENDER THE SHARES @ 107/-



TUSHAR S AGARWAL
AHMEDABAD
M# 09824601977

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General Warning : Investment in Shares Can be Injurious to Your WEALTH



NB :All information given in good faith. Please recheck every point before taking any investment decision. No responsibility with this blog / blog writer.