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What is the significance of the provision in Section 233(10) that prohibits a transferee company from holding any shares in its own name or trust?
  • a)
    To ensure transparency in shareholding
  • b)
    To prevent conflicts of interest
  • c)
    To protect minority shareholders
  • d)
    To ensure effective management of the company
Correct answer is option 'B'. Can you explain this answer?
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What is the significance of the provision in Section 233(10) that proh...
Section 233(10) prohibits a transferee company from holding any shares in its own name or trust after a merger or amalgamation. This provision aims to prevent conflicts of interest and any potential misuse of power, as the company would not hold shares that might lead to biased decision-making or self-serving actions.
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What is the significance of the provision in Section 233(10) that prohibits a transferee company from holding any shares in its own name or trust?a)To ensure transparency in shareholdingb)To prevent conflicts of interestc)To protect minority shareholdersd)To ensure effective management of the companyCorrect answer is option 'B'. Can you explain this answer?
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What is the significance of the provision in Section 233(10) that prohibits a transferee company from holding any shares in its own name or trust?a)To ensure transparency in shareholdingb)To prevent conflicts of interestc)To protect minority shareholdersd)To ensure effective management of the companyCorrect answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the significance of the provision in Section 233(10) that prohibits a transferee company from holding any shares in its own name or trust?a)To ensure transparency in shareholdingb)To prevent conflicts of interestc)To protect minority shareholdersd)To ensure effective management of the companyCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the significance of the provision in Section 233(10) that prohibits a transferee company from holding any shares in its own name or trust?a)To ensure transparency in shareholdingb)To prevent conflicts of interestc)To protect minority shareholdersd)To ensure effective management of the companyCorrect answer is option 'B'. Can you explain this answer?.
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