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Procedure to be followed by a listed company to sell its fix

vidhya (Assistant Manager - Finance) (35 Points)

28 July 2011

HI all . If a listed company wants to sell its fixed assets whether a board approval is sufficient or AGM needs to be held?

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pahuja (C.A Final Student ) (472 Points)
Replied 28 July 2011

The sale proposals in prescribed format would be considered and approved at 3 levels:- (A) General Manager - in cases where the loans outstanding (incl. Those of pari-passu charge holders) are upto Rs.100.00 lakhs and sale offer covers the valuation of assets. (B) Managing Director in cases where the loans outstanding are upto Rs.100.00 lahs and sale offer does not cover the valuation of assets. OR In cases where the loans outstanding are over Rs.100.00 lakhs and sale offer covers the valuation of assets. (C) Settlement Committee - in cases where the loans outstanding are over Rs.100.00 lakhs and sale offer does not cover the valuation of assets.

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Nidhi Jain (CS ) (987 Points)
Replied 29 July 2011

WHERE U READ OR SEE THIS PAHUJA?

CS Smriti Sharma (ACS, B Samrish & Co.) (880 Points)
Replied 29 July 2011

Dear Vidhya,

Section 293 (1)(a) of Companies Act,1956 speaks of sell, lease or otherwise dispose off the whole or substantially the whole, of the undertaking of the company.Neither the Companies Act,1956 nor the listing agreement prescribes anything on sale of fixed assets. therfore board meeting would be sufficient unless the articles states otherwise.

Thanks & Regards :

Smriti Sharma

B. Samrish & Co.

Company Secretaries

www.bsamrishindia.com