Case Law Details
20 Microns Limited Vs BSE Limited (Securities Appellate Tribunal, Mumbai)
Case Analysis : SAT Verdict in 20 Microns Limited v. BSE Limited and Anr, on Regulation 17(1A) of LODR and Corporate Appointments
Introduction
In the resent case of 20 Microns Limited v. BSE Limited and Anr. SAT upheld the appointment of director through board resolution prior to special resolution and allowed for retrospective approval of shareholders. In this case 20 Microns Limited (the “Petitioner”) was listed on BSE and NSE. The company’s board of directors was constituted as per the requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ( the “LODR Regulations”). It was required to have not less than 6 directors on its board, which provide that:
“The listed entity shall ensure that approval of shareholders for appointment or re-appointment of a person on the Board of Directors or as a manager is taken at the next general meeting or within a time period of three months from the date of appointment, whichever is earlier.” It was also required to have at least 3 independent directors as per the regulation 17 (1D).
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