sweta (service) (46 Points)
19 June 2009In a Company there are normal share as well as shares with differential voting rights (DVR). Now Company wants to come out with an IPO. So is there any prerequirement/ guideline that company has to list its entire capital?
if it wants to keep its DVR shares unlisted, is there any problem during IPO process and getting it approved by SEBI?
Sudeep Das
(Senior Executive)
(22 Points)
Replied 21 June 2009
dear,
In the latest Companies Bill 2008, DVRs does not find mention which indicates that DVRs are not allowed to be kept or issued to the shareholders under the companies Act 1956.
If this stand find concrete grounds, then no DVRs shall be allowed and listed.
Regards
CAclubindia
