Friday, 19 June 2015

'Right to recommend appointment of directors' in the Articles is a right to nominate and not a mere

Contextually, Articles granting a promoter-shareholder "Right to recommend appointment of three directors" cannot be interpreted as mere "right to suggest". Brute strength in shareholding and even mere shareholding would suffice for that. It is a right to nominate. It was unnecessary to include in the articles a mere right to suggest. The right endures to each of the successors, legal representatives and assigns of the promoter shareholder as well and is not a "contract of personal service"

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