January 28, 2002
ISSUE OF SHARE CAPITAL WITH DIFFERENTIAL VOTING RIGHTS AMENDMENT RULES NOTIFIED
The Government in the Department of Company Affairs (DCA) has issued a notification amending the Companies (Issues of Share Capital with Differential Voting Rights) Rules, 2001 with immediate effect. The amendment substitutes the words "preceding three financial years" with the words, "three financial years" and the words "the financial year of the year", with the words "the financial year" in sub-rule (1) and sub-rule (2) respectively.
The notification has been issued under Clauses (a) and (b) of sub-section 1 of Section 642 of the Companies Act, 1956.
The Companies (Issue of Share Capital with Differential Voting Rights) Rules, 2001 was promulgated on March 3, 2001 to provide for every company limited by shares to issue shares with differential rights as to dividend, voting or otherwise provided it meets certain conditions stipulated under the rules.
Every company under this rule, is required to maintain a register under Section 150 of the Companies Act containing the particulars of differential rights to which the holder is entitled.