Shares with Differential Voting Rights (DVR), are an important element in the Indian capital market. However, all the entities are not permitted to do so. List down the companies which are not entitled to issue DVRs.

Shares with differential voting rights ("DVR") refer to equity shares holding differential rights as to dividend and/ or voting. Section 43 (a) (ii) of the Companies Act, 2013 read with Rule 4 of Companies (Share Capital and Debenture) Rules, 2014 allows a company limited by shares to issue DVRs as part of its share capital. However, following companies are not permitted to issue shares with DVR; The Company which has defaulted in: filing annual returns and financial statements for the last three financial years, repayment of matured deposits or payment of declared dividend, redemption of its preference shares/debentures which are due for redemption, payment of interest on such deposits or debentures or payment of dividend on preference shares, repayment of term loan taken from any public financial institution or state level financial institution or from a scheduled bank that has become due and payable, payment of statutory dues of the employees of the company or default in crediting the amount in Investor Education and Protection Fund to the Central Government. However, a Company may issue equity shares with differential rights upon expiry of 5 years form the end of the financial year in which such default was made good. The Company which has been penalized by Court or Tribunal during the last three years of any offence under the Reserve Bank of India Act, 1934, the Securities and Exchange Board of India Act, 1992, the Securities Contracts Regulation Act, 1956, the Foreign Exchange Management Act, 1999 or any other special Act, under which such companies being regulated by sectoral regulators.