Legal Question in Business Law in India

company A made ipo under prospectus under book building procedure isssue was very succesful subscribed by retail investors, FII. transaction handeled by indian merchant banks. the offering completed at 100RS/share issue size was 500 crores

of which RS250 CRORES was new capital raised by company & RS 250 cores was offer for sale by promotors. subsequently it was discovered that there was tax liability

OF 300 CRORES which had been not disclosed there is pending litigation in SC.NO MENTION of it in prospectus. if your client is indian company & its management CFO, CEO & GANERAL COUNCEL OF COMPANY advise them what option available to them & how best they protect themselves? [please guide with case laws]


Asked on 8/07/09, 8:08 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

The possible options available to the defaulting company and its management may be examined at an appropriate stage. It may be premature at this stage to presume any litigation on this count. We may consider plausible defence after a complaint, if any, is received.

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Answered on 8/07/09, 9:09 am
Pranav Desai PD Legal & Associates

Consult a corporate law firm to check the option of whether ignorance can be claimed based on the documents you have.

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Answered on 8/09/09, 1:15 pm


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