ISSUE:
Whether LIC has the authority to issue the call for an extraordinary general meeting?
Can shareholders submit a requisition notice for the appointment of new Directors?
Whether the Reserve Bank of India has the authority to authorise the acquisition of shares in India by a foreign business after the fact?
RULE:
LIC's action in issuing a requisition notice for the replacement of nine directors by nominating new directors is not contrary to section 284 of the Companies Act, 1956, nor was it ultra vires, and the powers vested in LIC under section 6 of the Life Insurance Corporation were not arbitrary or in violation of Article 14 of the Constitution of India.
In accordance with Section 173(2) of the Companies Act, the meeting and its purpose must be disclosed. However, the remark need not be made at the meeting. The shareholder cannot be prevented from calling an extraordinary general meeting and is not required to reveal the proposed resolution's motivations.