Section 9: Rights attached to shares in the blocked account

9. Rights attached to shares in the blocked account.—(1) All rights in respect of the sixty per cent shares of each initial shareholder deposited in the blocked account shall vest and be exercised in the following manner, namely:- (a) the right to receive dividends, bonus shares, rights shares and the proceeds of sale of these shares shall vest in the initial shareholders: Provided that the bonus shares and right shares if any, shall be added to the blocked shares of the initial shareholder and shall be disposed of alongwith those blocked shares in the manner provided in this Act; (b) the right to sell these shares shall vest in the stock exchange to be exercised in the manner provided in section 12; and (c) the right to exercise the voting power attached to these shares shall remain suspended till the time of sale of these shares in accordance with section 12. (2) The blocked account shall be operated by the board of directors in the manner prescribed by the Commission.

Effective date: 2012-01-01

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