WHICH ONE WILL PREVAIL SEBI ACT OR COMPANIES ACT
Daksh
(Querist) 12 August 2010
This query is : Resolved
Dear All,
Kindly enumerate with the help of case law and legal provisions that in the eventuality of contradiction amongst the provisions of SEBI ACT and THE COMPANIES ACT which one will prevail in any judicial proceedings.
Best Regards
Daksh
Heaven 2011
(Expert) 13 August 2010
Dear Daksh,
This is indeed a tough question and also tough to interpret. Actually both the statute will have their due provisional effect. However so far a listed company is concerned, though the listing agreement and other SEBI norms will have a major effect over the corporate procedure, it can not be said that it will actually override the Companies Act. Suppose in case of board meeting requirement and publishing financial results the SEBI will play major role, for substantial acqusition SEBI and Companies act will have equal role, for merger and acquisition which is entirely the matter within the ambit of High Court, the Companies Act will override. So it would vary from case to case. So far my knowledge any partcular case law will not be able to explain. However if you have in your knowledge kindly refer me.
Daksh
(Querist) 16 August 2010
Thanks dear for your enlightening response.
God bless
Best Regards
Daksh
