Legal Updates

‎‎‎‎‎‎‎‎‎‎A verdict fulfilment of which means change of control over a company will be stayed during an appeal

June 29, 2017

A verdict ordered shares to be issued so that after the issuance the recipient of the shares will become the control holder.

The Supreme Court ordered stay of proceeding during the appeal and repeated the caselaw that filing an appeal does not hold the fulfilment of the verdict unless shown that the chances of the appeal are high; and that if the appeal is accepted the fulfilment of the verdict might cause irreparable damage to the movant or make it difficult to revert to the situation prior to fulfilment of the verdict.  However, in this case it is not required to check the chances of the appeal because the meaning of issuance of shares of the company is change of control from the current shareholders and thus there is a real apprehension that irreparable damage will be caused to the company.