Now renamed Kanara Consumer Products
Please read Special Resolution -5 of the Notice
https://drive.google.com/file/d/1EUn2rREnnpxqUYJDYa-VA1ZmXtq26WJp/view
A clever trick by the Promoters to compulsorily buy out the remaining shares at the throw away rate of Rs 1300 / share
Shareholders intend to oppose this Resolution , also , in NCLT
SEBI must intervene. Laws must be changed to protect the small share holders of Unlisted Companies.
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Blog Comments
Regional Director , MCA , Mumbai Opposes HSBC InvestDirect 's Compulsory Buy Back of Non Promoter Shares
http://www.mca.gov.in/MinistryV2/regionaldirectors.html.
In a landmark move the Hon'ble Regional Director opposed in NCLT for the Selective Reduction of Capital.
Last hearing of HSBC InvestDitect in NCLT was on 01/07/2019.
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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 Fomento Resorts Limited
feels that Rs166 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
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The Valuers etc are all engaged by the Managements and cannot be considered as Unbiased or totally Fair. Affected shareholders should be allowed to have their own valuers / Valuation Reports.
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SEBI must intervene. Laws must be changed to protect the small share holders of Unlisted Companies.
http://smartinvestor.business-standard.com/market/story-335029-storydet-Bosch_firm_squeezes_minority_holders.htm
http://www.financialexpress.com/article/markets/indian-markets/companies-shareholders-must-find-common-ground-on-exit-strategies/133280/
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Games Promoters Play ( on Minority Public Shareholders ).
Promoters use clever moves to forcibly eject Public shareholders when ever they feel like i.e. when the Company has excellent future prospects or when it suits the Promoters.
1 ) Selective cancellation of Non Promoters shares.
2 ) Conversion of Equity shares in to Redeemable Preference Shares.
3 ) Consolidation of face value of one share to a Higher Denomination .
In all cases , valuers are appointed and Paid by the Company. Thus they are Promoters' Agents.
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Jolly Board , which holds very valuable real estate assets in Kanjur Marg , Mumabi , is also following similar cheap tactic to oust loyal remainder small shareholders.
http://www.rareindianshares.info/2015/11/jolly-board-consolidates-face-value-to.html
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Suashish Diamonds does the same anti shareholders move :-
http://www.rareindianshares.info/2015/12/suashish-diamonds-to-kick-out-loyal.html
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Blog Disclaimer : Please Recheck All Information . All information given in Good Faith. No Responsibility .
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For further case studies vis - a - vis small shareholders , please consider the following links :-
General Warning : Investment in Shares Can be Injurious to Your WEALTH
Disclosure : The Blog writer in his / family names used to have holdings in Kanara Consumer Products . So please make suitable " provisions " for any likely Over Optimism
NB :All information given in good faith. Please recheck every point before taking an investment decision.No responsibility with this blog / blog writer
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