Tuesday, February 8, 2011

SEBI to disallow interested shareholders in voting on special resolution on related party transaction


To protect small and diversified shareholders in listed companies from abusive related party transactions, SEBI to recommend  Ministry of Corporate Affairs to  disallow interested shareholders from voting on the special resolution of the prescribed related party transaction.
This view was taken based on the learning from the investigation in the matter of Satyam Computer Services Limited.

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