Posted On: 19 December, 2024
The case questioned whether shareholder approval under Section 62(1)(c) of the Companies Act was required for converting debt into equity. While SARFAESI allows creditors to convert debt, the Court held that Jyoti Limited’s Board resolution triggered the need for shareholder consent and SEBI compliance. Dismissing the appeal, the Court emphasized corporate governance, transparency, and shareholder rights.
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