Exit Opportunity - Shareholders Shield Under The New Companies Bill

The proposed amendments under the Companies Bill 2011 have been approved by the Union Cabinet on 04^th October 2011. With the proposed reformatory and contemporary provisions in the Companies Bill, 2011 the companies in the country would be able to comply with the requirements of the proposed Companies Act in a better and more effective manner. Exit opportunity is one of the contemporary provisions to protect the untainted Investor. The Companies Bill 2011 in its ladder of investor protection has introduced the step for exit opportunity. An opportunity provided to the stakeholders to exit from the Company at the instance of Change in the objects of the Company or change in the prospectus of the Company.