19 September 2023
Is dematerializing physical form of shares possible after 30/Sep. 2023. A company of which I am a shareholder. holds physical form of shares. The company has been dissolved. I am trying to reinstate the company after coming to know of a left-out asset as a major shareholder. Informed the Official liquidator, He has acknowledged the appeal. I am moving in the High court. The last date for dematerializing is 30.9.2023. Do I stand a chance of retrieving the shares of ICICI which is the asset of the dissolved company?
06 July 2024
If a company has been dissolved and you are attempting to reinstate it through legal proceedings, the process of dematerializing physical shares after 30th September 2023 could be challenging. Here’s a breakdown of the situation and considerations:
1. **Dissolution of the Company**: Once a company is dissolved, its legal existence ceases, and typically, the shares held in physical form become frozen or are subject to specific procedures outlined by the regulatory authorities.
2. **Dematerialization Deadline**: The deadline for dematerializing physical shares, often set by regulatory bodies like SEBI (Securities and Exchange Board of India), is important. If shares are not dematerialized by the deadline, they may become difficult to retrieve or transfer as per normal procedures.
3. **Legal Proceedings**: Since you are moving to reinstate the company through legal channels and have informed the Official Liquidator who has acknowledged your appeal, the outcome of your case in the High Court will determine if the company can be reinstated. If successful, the legal process may address the status of assets including shares.
4. **ICICI Shares as an Asset**: If ICICI shares are assets of the dissolved company and were held in physical form, their status post-dissolution would typically be addressed during liquidation proceedings. The Official Liquidator’s role would be crucial in determining the status and disposition of such assets.
5. **Reinstatement and Share Recovery**: If the High Court reinstates the company, you may have avenues to recover or address the status of ICICI shares held by the company. However, the dematerialization deadline of 30th September 2023 may complicate direct dematerialization processes unless addressed through specific legal provisions or extensions granted by the regulatory authorities.
**Consult Legal Advice**: Given the complexity of the situation involving company dissolution, asset recovery, and legal proceedings, it’s advisable to consult with a qualified legal professional who specializes in corporate law and securities matters. They can provide tailored advice based on the specifics of your case and the current legal framework.
In summary, while pursuing reinstatement through legal channels is a step in the right direction, the feasibility of dematerializing shares after the deadline and recovering specific assets like ICICI shares will depend on the outcomes of the legal proceedings and the cooperation of relevant regulatory bodies.
CAclubindia
