Tag: Squeeze Out
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Selective Capital Reduction and Minority Exit: Supreme Court Clarifies the Law
[Bharat Vasani is Senior Advisor – Corporate laws and Maharshi Shah an Associate at the Mumbai office of Cyril Amarchand Mangaldas] Summary: This post examines the Supreme Court of India’s recent decision in Pannalal Bhansali v. Bharti Telecom Limited (2026), which considers the legality of selective capital reduction under section 66 of the Companies Act, 2013. It analyses key questions addressed…
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Takeover of Unlisted Companies: A New Route
[Posted by Umakanth Varottil] Squeeze out of minority shareholders of companies has been a controversial area. As a co-author and I had discussed, there are a number of methods by which squeeze outs can be effected in Indian companies. By way of a recent set of notification and rule-making efforts, the Ministry of Corporate Affairs…
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Squeeze Outs: Analyzing the Cadbury Decision
[Posted by Umakanth Varottil] [Professor Vikramaditya Khanna and I have co-authored the following post] Background In India, several transaction structures are available for controlling shareholders to squeeze out minority shareholders. These include the compulsory acquisition mechanism, scheme of arrangement and reduction of capital. Out of these, the most commonly used method is the reduction of…
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Delaware Standard for Controlled Company Mergers
[Posted by Umakanth Varottil] Delaware courts have long been considering disputes pertaining to mergers between companies and their controlling shareholders. Not only do such mergers involve related party transactions but they are also used as a means to squeeze out the minority shareholders of the target who are cashed out as part of the merger.…
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Andhra Pradesh High Court on Reduction of Capital: More Uncertainty?
[Posted by Mihir Naniwadekar] In an earlier post, I had highlighted some observations of the Bombay High Court in Re Organon, and had commented on whether the decision of the Single Judge in that case stood easily along with the observations of a Division Bench in Sandvik. The decision in Sandvik can perhaps be read…
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Section 100 revisited: In Re Organon
[Posted by Mihir Naniwadekar] We have discussed the law on reduction of share capital under Section 100 of the Companies Act previously. A recent decision of a Single Judge of the Bombay High Court has an interesting observation in this regard. In Re Organon (India) Limited [2010] 101 SCL 270 (Bom), Kathawalla J. observes after…
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Squeezing Out Minority Shareholders: A Recent Judgment
[Posted by Umakanth Varottil] st1:*{behavior:url(#ieooui) } The question of squeezing out minority shareholders (also known as freezeouts in some jurisdictions) is always a vexed question. This is because the law in certain circumstances allows minority shareholders to be forcibly bought out by the majority shareholders or the company such that they are forced out of…