valid as on 20/06/2024

Section 48.Variation of shareholders' rights.
Effective from 15-12-2016

(1) Where a capital of the  is divided into different classes of shares, the rights attached to the shares of any class may be varied with the consent in writing of the holders of not less than three-fourths of the issued shares of that class or by means of a special resolution passed at a separate meeting of the holders of the issued shares of that class,—

(a) if provision with respect to such variation is contained in the memorandum or   of the company; or

(b) in the absence of any such provision in the memorandum or articles, if such variation is not prohibited by the terms of issue of the shares of that class:

Provided that if variation by one class of shareholders affects the rights of any other class of shareholders, the consent of three-fourths of such other class of shareholders shall also be obtained and the provisions of this section shall apply to such variation.

(2) Where the holders of not less than ten per cent of the issued shares of a class did not consent to such variation or vote in favour of the special resolution for the variation, they may apply to the to have the variation cancelled, and where any such application is made, the variation shall not have effect unless and until it is confirmed by the Tribunal:

Provided that an application under this section shall be made within twenty-one days after the date on which the consent was given or the resolution was passed, as the case may be, and may be made on behalf of the shareholders entitled to make the application by such one or more of their number as they may appoint in writing for the purpose.

(3) The decision of the Tribunal on any application under sub-section (2) shall be binding on the shareholders.

(4) The company shall, within thirty days of the date of the order of the Tribunal, file a copy thereof with the Registrar.

2(84) Share means a share in the share capital of a company and includes stock
Company means a company incorporated under this Act or under any previous company law
Articles means the articles of association of a company as originally framed or as altered from time to time or applied in pursuance of any previous company law or of this Act
 “Tribunal” means the National Company Law Tribunal constituted under section 408
Omitted vide Companies (Amendment) Act, 2020 dated 28.09.2020 with effect from 21.12.2020. To view the Act, Click Here. To view the commencement notification, Click Here.

Commencement Notification under Companies (Amendment) Act, 2020 dated 21.12.2020

Companies (Amendment) Act, 2020 dated 28.09.2020

Enforcement Notification S.O. 3677(E) dated 07/12/2016

MCA Notification dated 19.01.2023 regarding Companies (Incorporation) Amendment Rules, 2023

Form INC – 28 – Substituted vide MCA Notification dated 19.01.2023

CAIRR PLUS on Google Playsecretarial automation?Subscribe for Updates