Variation of Share-holder's Right

Section 48(1) of the companies act, 2013, lays down that where a share capital of the company is divided into different classes of shares, the rights attached to the shares of any class can be varied with the consent in writing of the holders of not less than three-fourths of the issued shares of that class or with the sanction of a special resolution passed at a separate meeting of the holders of the issued shares of that class. Further, the variation of rights of shareholders can be effected only:-

• If provisions with respect to such variation is contained in the MoA/AoA of the company, or
• In the absence of any such provisions in a MoA/AoA of the association of the company, if such a variation is not prohibited by the terms of issue of the shares of that class.