The Board of directors of a listed company desires to delist its equity shares from all the recognised stock exchanges. The voting details through postal ballot are as under: Total nos. of voters: 7,000 (Public: 5,000 &a

Regulation 6 of the SEBI (Delisting of Equity Shares) Regulations, 2009, prescribed that if a company proposes to delist its equity shares from all the recognized stock exchanges where they are listed, it is required to obtain the prior approval of shareholders of the company by special resolution passed through postal ballot, after disclosure of all material facts in the explanatory statement sent to the shareholders in relation to such resolution. However, the special resolution shall be acted upon if and only if the votes cast by public shareholders in favour of the proposal amount to at least two times the number of votes cast by public shareholders against it. In the mentioned case, the resolution was passed as special resolution as it has approval of 75% of the shareholders, however, the resolution does not have requisite approval of public shareholders. The votes cast in favour of resolution (3300 votes) is not the twice of the votes cast against the resolution (1700 votes) by the public shareholders. Therefore, the special resolution cannot be acted upon by the company.