04-20-2010, 03:41 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Star</i>
<br />Dears,
It is clear from the initial threads that the word company in referred Rule does not include private company as its definition restricts to offer the share to public.
Discussable problem was only whether or not Rule 9 would be applicable on the person holding 65% shareholding in listed company..!!!
If a person holds the same shareholding 65% in a private company & wants to disinvest it. Other members do not have sufficient personal resources what would be the way out?
Regards,
*
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Star,
Your query was relating to Listed Company and it was replied accordingly. Although SECP is responsible for smoothness in capital market but in my opinion CO,1984 and Companies Rules(all company rules) do not deal in large with the effects of market forces on the value of shares of companies rather SECP ACT and SECP Ordinance lay down provisions in this regard.
As far as your second query is concerned the law put restriction on the transfer of shares by the members of private company. If a person who wants to sale his 65% holdings in a Private Company wants to disinvest his investment in the company and the other members do not have sufficient resources then new investors are invited with the consensus of other members. The second option is that the company can be converted into Public Company.
However, your this query has more decisional aspects than legal aspects.
<br />Dears,
It is clear from the initial threads that the word company in referred Rule does not include private company as its definition restricts to offer the share to public.
Discussable problem was only whether or not Rule 9 would be applicable on the person holding 65% shareholding in listed company..!!!
If a person holds the same shareholding 65% in a private company & wants to disinvest it. Other members do not have sufficient personal resources what would be the way out?
Regards,
*
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Star,
Your query was relating to Listed Company and it was replied accordingly. Although SECP is responsible for smoothness in capital market but in my opinion CO,1984 and Companies Rules(all company rules) do not deal in large with the effects of market forces on the value of shares of companies rather SECP ACT and SECP Ordinance lay down provisions in this regard.
As far as your second query is concerned the law put restriction on the transfer of shares by the members of private company. If a person who wants to sale his 65% holdings in a Private Company wants to disinvest his investment in the company and the other members do not have sufficient resources then new investors are invited with the consensus of other members. The second option is that the company can be converted into Public Company.
However, your this query has more decisional aspects than legal aspects.
